Stocks tend to outperform after midterm elections. Will the trend hold? Liz Ann Sonders, Schwab's Chief Investment Strategist, gives her point of view.
Will midterms affect market performance?
“Post-election outperformance is often driven by the market's expectation of increased government spending from a new Congress. But an additional infusion of funds seems unlikely this year, given the government's historic levels of spending and stimulus in response to the pandemic.”
“The combination of high inflation, the war in Ukraine, and a lingering pandemic has already made this cycle unlike prior midterm years. With so many other forces at play in the market, I wouldn't put much weight in historical midterm-year performance.”
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