Saturday, January 31, 2026

How U.S. midterm elections cay affect markets

 This article posted on January 22 explains that even with many dramatic global events happening in 2026, investors should still pay attention to the upcoming U.S. midterm elections. Historically, the president's party usually loses seats in Congress during midterms, but the authors state that the white house is attempting to limit those loses with political message. Another point they make is that election years can cause markets to shift aggressively both up and down. 

The authors make a point to investors to not panic about political noise. The authors emphasize that markets have a long history of becoming calmer and performing better after midterm elections once the results are known. They encourage people to focus on long‑term fundamentals like company earnings and economic trends rather than short‑term headlines or political drama even though these short swings don't tend to change long term trajectories.

https://www.capitalgroup.com/advisor/insights/articles/midterm-elections-markets-5-charts.html 

1 comment:

  1. This reminds me of the current snow we just had when people were stockpiling food and snow equipment just because they thought the worst was to come. This article has a good message to have a long run mindset that things may seem bad for days or weeks, but things will eventually even out for the economy .

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