Midterm Impact To The Market And Crypto

All eyes are on the US midterm, for a very good reason. With all markets getting dumped hard this year, investors are looking for the next direction.

This morning Seeking Alpha sent out a note, quote:

Turns out that since 1948, when there’s a Democrat in the White House and Republicans take control of Congress, it’s resulted in annualized returns for the S&P 500 of 16.9% (according to data from Edelman Financial Engines).

This is interesting. History may not repeat but they often rhyme. Is it because of political impasse (nothing gets done) we get superior returns with big government out of the way? Or is it because both parties work together so we get well thought out policies that stimulate growth and innovation? There is always a risk that this time may indeed be different.

Crypto and stock markets have had very high correlation until recently, where crypto market seemed to have found the floor while big tech continued to dump. Some even speculated this is a great reshuffling from tech into energy, because of geopolitical and green transition is premature. Energy stocks have been doing exceptionally well and continues to recover.

Do you think the correlation between stock and crypto will decouple?

Will the stock and crypto move in tandem after the midterm?