Will the Midterm Elections Move Markets?

The midterm elections have come and gone, and although the results don’t appear as one-sided as many predicted, it seems one party will narrowly take control of the House, while the other is projected to gain control of the Senate with an impending runoff in Georgia still in play.

It’s uncertain whether the early results will influence the stock market, especially since the final results in many races are still being tabulated. Interestingly, in 17 of the 19 midterms since 1946, markets performed better in the six months following an election than they did in the six months leading up to it. Past performance does not guarantee future results.¹

The truth is, it’s too soon to tell how the midterm results will impact investors. Over the coming months, Congress will pick up several key issues that may influence the markets, such as the debt ceiling for example.

Critical events like the midterm elections are just one of the many major occurrences we anticipate and consider when building your portfolio. If you have any questions about current or future market conditions, don’t hesitate to reach out. We’re always happy to help.

¹Investorplace.com, 2022. Stocks are measured by the Standard & Poor’s 500 Composite Index, which is an unmanaged index that is considered representative of the overall U.S. stock market. Index performance is not indicative of the past performance of a particular investment. Individuals cannot invest directly in an index. The return and principal value of stock prices will fluctuate as market conditions change. And shares, when sold, may be worth more or less than their original cost.