CFRA Strategist Sam Stovall: Midterm Year Q4 Historically Posts 5.5% Gains

Sam Stovall, chief investment strategist at CFRA, noted that the S&P 500 historically averages a 5.5% gain in the fourth quarter of midterm election years. He advised investors to maintain positions in third-quarter leaders, noting that sectors with low net debt-to-EBITDA ratios, such as technology and energy, have outperformed amid rising interest rates. Stovall dismissed concerns that the current rally borrowed performance from the fourth quarter.