Midterm Elections: What Do They Mean for Markets?

Midterm Elections: What Do They Mean for Markets?
With the recent market volatility this last month and the upcoming mid-term elections, it is not uncommon to receive questions regarding the potential market reactions. Dimensional provided a great little piece on this below. The two exhibits that accompany the article really tell the story nicely. Enjoy! Midterm Elections: What Do They Mean for Markets? It’s almost Election Day in the US once again. For those who need a brief civics refresher, every two years the full US House of Representatives and one-third of the Senate are up for reelection. While the outcomes of the elections are uncertain, one thing we can count on is that plenty of opinions and prognostications will be floated in the days to come. In financial circles, this will almost assuredly include any potential for perceived impact on markets. But should long-term investors focus on midterm elections? Markets Work We would caution investors against making short-term changes to a long-term plan to try to profit or avoid losses from changes in the political winds. For context, it is helpful to think of markets as a powerful information-processing machine. The combined impact of millions of investors placing billions of dollars’ worth of trades each day results […]

Source: Retirement Researcher

Midterm Elections: What Do They Mean for Markets?

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