History suggests US stocks tend to deliver strong gains in the year after midterm elections, but with bubble fears flaring up, Violeta Todorova of Leverage Shares explains why 'buy the dip' will continue to be the dominant investing trend

History suggests US stocks tend to deliver strong gains in the year after midterm elections, but with bubble fears flaring up, Violeta Todorova of Leverage Shares explains why 'buy the dip' will continue to be the dominant investing trend

Historians estimate that roughly one in four cowboys in the Old West were Black, yet Hollywood left them out of the story for decades. From Bill Pickett to the Compton Cowboys, Black cowboy culture has been thriving for generations, and the rest of the country is finally catching up.

History says last week's drop was a buying opportunity. On Thursday, the S&P 500 declined -4.4%, its largest daily drop since April 2025. Before that day, the index recorded 56 one-day declines of at least -4.0% since 1952. Following such drops, the S&P 500 has gained +1.0% on average over the next week. By comparison, its average weekly return across all periods has been +0.2%. Over the next month, the index has averaged a gain of +2.0%, compared with +0.8% across all periods. Over the following 3 months, the S&P 500 has averaged +6.7%, more than triple the historical average of +2.2%. History suggests the market is set for a meaningful rebound.