For whatever reason, midterm elections have tended to be a good time to buy equities. The table below outlines the S&P 500 return in periods prior to and following the past 17 elections.

Mid Term Election Returns

There are a some theories that explain strong market performance following midterm elections, but they are rely heavily on narratives and ignore the complexity of financial markets. As I expressed recently on CNBC, election outcomes are less important to long-term returns than many people would like you to believe.

Investing in stocks is a bet on capitalism. As long as corporations remain interested in being profitable, markets should continue to trend upwards over time. Sure there will be bear markets and recessions along the way, but investors should continue to be compensated for taking market risk over long periods of time.

If you’re feeling uneasy about the market for any reason, check out the note I wrote to Plancorp clients last week. Remember, losses are the price you pay in exchange for the stock market’s higher expected returns relative to safer assets like bonds or cash.

Get On The List

Sign up for my email list and I’ll drop current, cutting edge insights on how to manage your money in unpredictable times.

You have Successfully Subscribed!

Subscribe To My Email List

Subscribe To My Email List

Sign up for my email list and I’ll teach you everything I know about making smart money decisions.

You have Successfully Subscribed!

Download the Goal Planning Worksheet

Please enter your email and we will send it right over!

Please check your inbox shortly!

Download the Net Worth Worksheet

Please enter your email and we will send it right over!

Please check your inbox shortly!

Download the Cash Flow Worksheet

Please enter your email and we will send it right over!

Please check your inbox shortly!

Download the How to Interview a Financial Advisor Worksheet

Please enter your email and we will send it right over!

Please check your inbox shortly!

Download the Rent vs. Buy Worksheet

Please enter your email and we will send it right over!

Please check your inbox shortly!

Get On The List

Sign up for my email list to get practical insights on how to manage your money and investments in unpredictable times. 

You have Successfully Subscribed!

Make Smart Choices With Your Money

Get bi-weekly tips on how to be a disciplined investor, proactive in your finances, and protect your wealth.

You have successfully subscribed!

GOOD THINGS

... come to those who sign up for my bi-weekly newsletter.

New content, my weekly reading links, and more.

You have Successfully Subscribed!

Want to see how I invest?

Get a detailed look at how a CIO of $7 billion dollars manages his own assets, portfolio structure, and deploys extra cash.

Success, check your email for the download!

Get A Behind The Scenes

Tour of My Finances

Get a detailed look at how a CIO of $6 billion dollars manages his own assets, portfolio structure, and deploys extra cash.

You have Successfully Subscribed!

Cover Image - How I Invest

Download Now:

How I Invest

Get a detailed walkthrough of my finances, portfolio, and assets.

Please check your inbox shortly!

Share This