Midterm election year stock volatility has been amplified by the triggering of a potentially prolonged Domino Effect of higher oil prices that lead to climbing inflation readings, put upward pressure on bond yields, and increase the likelihood that the next rate move by the Federal Reserve will be a hike, not the cut as earlier anticipated. Coincidently, rate increases were the first move by all six newly installed Fed chairs since 1978 (and eight of nine new Chairs since WWII). In addition, one month after the first rate hike following the end of an easing cycle since 1990, the S&P 500 declined an average of approximately 3% and was led to the downside by the Financials and Consumer Discretionary sectors. What’s more, the Health Care sector beat the S&P 500 100% of the time in “Sell in May” periods during midterm election years since 1990. Will volatility and defensive posturing continue to reign ahead of this year’s elections? Sam Stovall, CFRA’s Chief Investment Strategist, will discuss what the market’s recent rotation implies for investor returns as we head into the second half of the year.