If the midterm elections go as Wall Street expects, stocks should rally into year-end, according to RBC.
The average S & P 500 returns are higher in the years when a Democrat is president and the GOP controls Congress, her analysis showed.
This year is most similar to 2002 — so far the S & P has had a 76% correlation with 2002, the strongest in any midterm election year in recent decades.
Back then, the S & P rallied back 20% from its October lows, she said.
Additionally, biotech in the health-care space and specialty/consumer finance and regional banks within financials should outperform, according to RBC.