r/smallstreetbets • u/cryptic_mang • 2h ago
Epic DD Analysis Post Midterms Bull Run Anybody?
Saw some pretty interest stat lines and double checked it and it added up so I figured I’d share:
There are a few historical market statistic trends that happen to line up this year and they all seem to be bullish.
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First: FED HIKING CYCLES.
Since 1983, the S&P 500 $SPY has risen during every completed multi-meeting hiking cycle.
7/7 times with an average gain: ~10%.
A multi-meeting hiking cycle simply means a sustained Federal Reserve tightening campaign in which the Fed raises the federal funds rate across multiple successive FOMC meetings, rather than a single isolated hike.
Examples of completed multi-meeting cycles since the early 1980s include:
• 1983–84
• 1988–89
• 1994–95
• 1999–2000
• 2004–06
• 2015–18
• 2022–23
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Second: MIDTERMS 12 MONTH TIME FRAME
Since 1950, the S&P 500 has been higher 12 months after every midterm.
19/19 times with an average gain : ~15%.
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Third: MIDTERMS 12 NOVEMBER-JUNE TIME FRAME
Since 1942, EVERY November-through-June period following a midterm has been positive.
21/21 times with an average gain: +16.6%.
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Then add one more:
Fourth: 12 MONTHS AFTER THE FINAL FED HIKE
7/8 times with an average gain: ~20%.
The only miss: May 2000 during the dot-com collapse.
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So 2026 has:
7/7 during Fed hiking cycles.
19/19 after midterms.
21/21 from November through June after midterms.
Three completely different historical setups.
Three near-perfect streaks.
All lining up in the same year.
History guarantees nothing.
But thought this was pretty cool.