After the mid-day days, the right time to buy shares: 5 choices – November 7, 2018

Traditionally, the stock market has tended to rise after a mid-term election, regardless of the outcome. In fact, in the current situation where the Democrats took control of the House of Representatives while the government kept the Senate, the actions are about to do even better. To top it off, the US economy is doing well and fears of a trade war have eased somewhat.

Given this dynamic, investing in healthy stocks that can make the most of the current scenario seems prudent.

After mid-session, equities could jump 20%

According to the Goldman Sachs Group, Inc. (GS – Free Report), the average returns of the S & P 500 have always improved in November, especially after the mid-term, according to data dating back to 1970. This enabled November to generate a return of 1.09% during a presidential election, slightly higher 1.08% generated in November in a sabbatical year.

In fact, the current split Congress bodes well for the return of stock markets in the near future. In the current situation, where Democrats control the House of Representatives and the Senate of Republicans, the S & P 500 is expected to gain an average of 20% over the next year. Meanwhile, if the Republicans had won the Senate and Democrats the Senate, the S & P 500 had to earn a meager 3%.

However, if we still ignore the outcome, the equity market should gain ground after mid-term. According to the S & P Capital IQ index, the S & P 500 index rose an average of 15.3% over the six months following the mid-term election in the third year of a given presidency, which is moreover the case this year. The research also showed that the frequency of completion (FoA) for this event was 94% of the total period from October 31, 1944 to September 29, 2014.

(Source: S & P Capital IQ)

Stephen McBride, chief editor of the RiskHedge report, also said stocks had risen an average of 17% in the year after a mid-term election since 1946. McBride also acknowledged that it's a good thing. was the third year of a presidential term and one year historically the strongest. for the stock market.

By the way, the stock market has always won in November or winter, while markets have been more or less stable during the "summer" months (May-October). For example, the Dow Jones recorded an average gain of 7.5% over the period from November to April, while the blue-chip bond yielded a meager 0.3% for the period from May to October.

Healthy economic growth, positive trade talks between the United States and China

But why only rely on historical trends? The US economy is doing well and this should eventually help the stock market to gain ground. In the last two quarters, the US economy has recorded the fastest six-month growth in four years and is expected to meet the Trump administration's annual growth target of 3%. If that happens, it will be the best annual performance since 2005, two years before the Great Recession.

The US economy recovered in the third quarter as GDP grew at an annualized rate of 3.5%, according to the US Department of Commerce. In fact, the country's total output of goods and services grew even more strongly by 4.2% in the second quarter.

On the geopolitical front, things also improve. Trump recently had a "very good conversation" with Chinese President Xi Jinping. Trump tweeted that trade talks with China "were progressing well" before face-to-face talks between the two superpowers at the G20 summit in Argentina later this month. Beijing, in response, said that he was also ready for talks with the United States to solve trade problems. It goes without saying that the United States and China have been involved for some time in a trade conflict characterized by a flagrant contradiction, which could have hurt economic growth in the short term.

5 best choices

As markets are ready to move north after midterm and economic growth is on the road to a staggering year, investing in high-growth stocks seems cautious at the moment.

Using our new style scoring system, we selected Zacks titles ranked first (strong buy) with a growth style score of A. Our research shows that titles with a style score A growth partner with a Zacks Rank offers the best investment opportunities in the growth investment sector.

Heidrick & Struggles International, Inc. (HSII – Free Report) provides executive search, culture and leadership consulting services. The Zacks consensus estimate of the company's results has increased 11.4% over the past 60 days. The company's expected growth rate for the current year is 105.5%, compared with 22.2% for the recruiting sector.

KEMET Corporation (KE M – Free Report) manufactures and sells pbadive electronic components. The estimate of Zacks' consensus on the company's profits has increased by 34.1% in the last 60 days. The Company's expected earnings growth rate for the current year is 90.9% compared to the 15.4% expected increase in the Electronics – Miscellaneous Components segment.

Methanex Corporation (MEOH – Free Report) produces and sells methanol. Zacks' consensus estimate of the company's profits has increased 5.6% in the last 60 days. The Company's expected growth rate for the current fiscal year is 63.7%, compared to 13.4% for the Chemicals – Diversified segment. You can see the complete list of the current ranks of Zacks n ° 1.

The Warehouse of Chiefs, Inc. (CHIEF – Free Report) distributes specialized food products in the United States. The estimate of Zacks' consensus on the company's profits has increased by 1.3% over the past 60 days. The Company's expected earnings growth rate for the current year is 77.3% compared to the forecast increase of 4% in the Foods – Other segment.

Clean Harbors, Inc. (CLH – Free Report) provides environmental, energy and industrial services in North America. The estimate of Zacks' consensus on the company's profits has increased by 20.2% in the last 60 days. The expected growth rate of the company for the current year is 260.6%, compared to 28% for the waste collection sector.

Will you make a fortune on the transition to electric cars?

Here is another stock idea to consider. Just like oil 150 years ago, lithium energy could soon shake the world, create millionaires and transform geopolitics. Soon, electric vehicles (EVs) may be cheaper than energy consumers. Some already reach 265 miles with a single charge.

According to Zacks research, with a drop in battery prices and a proliferation of charging stations, a company stands out.

This is not the one you think.

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