E TalkMarkets Tuesday Talk: A Once In 4 Years Day Like No Other!

Today is Election Day, the first Tuesday in November, when on a quadrennial basis American voters decide who will lead the country as President. Of course this Election day also includes other races, Senate, House, State Governorships as well as local races and referendums. 

The answers as why a Tuesday and why in November are interesting and also, add perspective to the current "challenges" to both early and mail-in voting.  History.com tells us that in 1845 Congress passed a federal law "designating the first Tuesday following the first Monday in November as Election Day. 

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But, why a Tuesday in November?

The answer stems from the agrarian makeup of 19th-century America. In the 1800s, most citizens worked as farmers and lived far from their polling place. Since people often traveled at least a day to vote, lawmakers needed to allow a two-day window for Election Day. Weekends were impractical, since most people spent Sundays in church, and Wednesday was market day for farmers. 

With this in mind, Tuesday was selected as the first and most convenient day of the week to hold elections. Farm culture also explains why Election Day always falls in November. Spring and early summer elections were thought to interfere with the planting season, and late summer and early fall elections overlapped with the harvest. That left the late fall month of November—after the harvest was complete, but before the arrival of harsh winter weather—as the best choice."

This year's run up to Election Day has certainly been choppy to say the least. After last week's slide down, markets rebounded on Monday with the S&P closing at 3,310, up 1.23%, the Dow closing at 26,925, up 1.6% and the Nasdaq Composite closing at 10,958, up 0.42%. Lower (than previous highs) but higher. Currently US market futures are green and the VIX is down.

TalkMarkets contributor Andrew Hecht is looking past the elections in his TM Editor's Choice, The Best Way To Play A Rebound In Energy And Airline Stocks. Hecht in an in depth piece starts with this:

"The stock market made an impressive comeback in a V-shaped recovery since the March 2020 low. However, energy and airline stocks continue to be the redheaded stepchildren that have underperformed almost all other sectors. The ugliest performance during one period can often lead to the best opportunities. The prolonged crash course for airlines and energy companies could give way to a substantial recovery over the coming years. A reward is always a function of the risk of an investment. Airline and energy-related companies are risky as we move towards the end of 2020, but that could change in 2021 if the threat of the virus recedes and economic conditions improve."

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