From Kiplinger · · 1m 10s
Midterms and Stocks: Why Politics Shouldn't Touch Your Portfolio
Midterm elections won't boost stocks, keep politics out of your portfolio this November.
In brief
Midterm elections won't boost stocks, keep politics out of your portfolio this November. Investors should avoid political predictions and focus on long-term market trends as midterms historically boost S&P 500 returns. Originally reported by Kiplinger.
Why politics shouldn't touch your portfolio
Positioning your portfolio with electoral politics in mind is a bad idea before November's midterm elections.
Barry Ritholtz's advice
Barry Ritholtz, co-founder of Ritholtz Wealth Management, urges keeping politics out of investing because it's emotional while investing is logical.
Historical stock performance
The S&P 500 has risen 18 straight times following midterms since 1954, with a 17.2% average annual return.
Ryan Detrick's insight
Ryan Detrick, chief market strategist at Carson Group, says the fourth quarter of a midterm year is historically the best quarter for stocks.
Gridlock benefits stocks
A divided Congress often helps the stock market by avoiding sweeping legislative changes.
Monica Guerra's analysis
Under a Republican president and split Congress, the S&P 500 historically gains 23% post-midterm versus 12% across all outcomes.
Long-term market stability
U.S. stocks have climbed under both parties since 1945 with midterm results having limited impact on long-term market performance.
The big picture
Investors should avoid political predictions and focus on long-term market trends as midterms historically boost S&P 500 returns.
