Predicting the Next Major Market Dip Before Midterm Elections
The U.S. stock market may experience a major crash in the near future. With less than two months remaining until the U.S. midterm elections, this analysis examines the potential strategies of both the United States and Iran. This text is translated and written by Jinxin, holds no moral stance, and does not constitute any financial advice. The strategy of the United States is to avoid escalating war as much as possible and maintain stable oil prices, since people have already become more or less accustomed to the current high price of oil, thereby minimizing the impact on the upcoming midterm elections. Conversely, Iran’s strategy is to escalate the conflict as much as possible to drive up crude oil prices and influence the U.S. midterm elections. Because the Democratic Party advocates for ending the war, Iran may attempt to boost their chances. Currently facing a U.S. blockade, Iran can only export a very limited amount of oil via railway and the Caspian Sea to its north. Its fiscal pressure has reached an absolute limit, making this their final window of opportunity. If the Democrats fail to control the House of Representatives, Trump will face no remaining checks on his power, leaving Iran in an extremely dire situation. The ultimate weapon Iran is likely to use in the future is bombing the refining, storage, and transport facilities of Gulf nations, which would cause oil prices to surge dramatically and trigger a steep decline in the U.S. stock market. Therefore, a bold prediction suggests that the U.S. stock market could suffer a severe crash between late September and mid-October. Investors should prepare as much cash as possible now and stand ready to buy the dip. Even if the market drop turns out to be minor, buying the dip starting in October remains a strong strategy, as various statistical methods consistently show that the S&P 500 rises by an average of 15% to 21% in the year following a midterm election. Hashtags #StockMarket #MidtermElections #Investin
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