Wednesday, February 22, 2017

charts: What to expect after the current Trump rally!

The following chart was seen on Twitter today.
It was posted by @NautilusCap, Nautilus Research.
They post many valuable and informative charts.

The title of their chart was:
"large post-inauguration rallies tend to come back to earth"
Look at this chart to see what happens after many Inaugurations, the purple highlighted area.
Courtesy of @NautilusCap
This chart shows that two Presidents had similar gains as Trump from Election to Inauguration and one calendar month return after Inauguration.  These two Presidents were highlighted in a green horizontal line and also in blue circles. 
Something else popped out other than "large post-inauguration rallies tend to come back to earth".
1) The post election year return also circled in blue in the last column
2) The second year low and then a big rally into the third year
The results to #2 above are shown in the following charts

Courtesy of Worden Bros

Courtesy of Worden Bros

In each of the two charts above you can see that even with a post election year return for Clinton of 31.01% and Kennedy of 23.13%, the stock market made bigger gains from the low in the second year to the high in the third year.  For Clinton the gain was 58% and for Kennedy it was 43%.
So, if history is going to repeat itself, the best is yet to come !

Keep following JustSignals using Twitter, @StockTwits or Follow By Email. Just submit your email address in the box on the Blog homepage. This has been posted for Educational Purposes Only.   Do your own work and consult with Professionals before making any investment decisions.  Past performance is not indicative of future results




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