How Will the Midterm Elections Affect the Market?

With the 2020 presidential election barely in the rear-view mirror, it’s hard to believe the 2022 midterm elections are almost here.

Austin Schaul, Head of Research for the Avantax Portfolio Management Group, discusses the upcoming elections and takes a historical look at what midterm elections mean to the market.

READ MORE ABOUT MARKET VOLATILITY DURING THE MIDTERM ELECTION CYCLE

Buckle Up for Volatility on the Horizon

Every couple of years, the twist and turns of the U.S. elections drive more than their fair share of volatility in the markets. The force behind the increased volatility rarely stems from the election outcomes themselves but from the uncertainty leading up to the election.

While markets generally are very efficient at pricing in known factors, it’s the unknown factors and perceived uncertainties that fuel instability and volatility.

This data indicates that the exacerbated volatility during election years is the norm, not the exception.

This allows investors to be proactive rather than reactive. Armed with properly calibrated expectations, investors can prepare for the turbulence ahead.

If the market’s ups and downs are making you nervous, let us help.

READ MORE ABOUT MARKET VOLATILITY DURING THE MIDTERM ELECTION CYCLE