{
  "id": 19740515,
  "title": "History Says This Investing Strategy Has Never Failed After a Midterm Election",
  "url": "https://urgent.news/2026/11/13/history-says-this-investing-strategy-has-never-failed-after-a-midterm",
  "topic": "world",
  "section": "World",
  "published": "2026-11-13T02:00:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/11/12/history-says-investing-strategy-midterm-election/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "The midterm elections have concluded, and Democrats are set to assume control of Congress from the Republicans in January. This shift in political power is expected to bring increased uncertainty and volatility to the stock market, particularly in relation to the artificial intelligence (AI) sector. Investors are concerned that stricter scrutiny may be placed on this industry, which has been fueled by significant capital investments from hyperscalers. However, the data shows that this type of political upheaval has never caused the stock market to underperform after a midterm election.\n\nSince 1980, the S&P 500 index (^GSPC -0.35%) has consistently delivered a positive total return over the 12 months following a midterm election, with an average gain of 13.7%. This record holds true regardless of whether Congress is controlled by Democrats or Republicans. The key takeaway is that investors should resist the urge to make drastic changes to their portfolios based solely on election outcomes. History demonstrates that staying invested in the stock market is the optimal strategy for long-term financial success.\n\nRather than altering investment strategies, investors should focus on identifying high-quality businesses with strong balance sheets and durable growth potential. Valuation is also important, and purchasing stocks at a margin of safety can help mitigate risk. For those who prefer a low-maintenance approach, investing in an S&P 500 tracker like the Vanguard S&P 500 ETF (VOO -0.34%) provides instant exposure to the largest and most influential companies in the U.S. economy.",
  "summary": "The best move is often no move at all.",
  "key_points": [
    "Midterm elections in 1980 marked start of 12-month trend",
    "S&P 500 delivered positive total return after each midterm",
    "Investors should stay invested, not change portfolios based on elections"
  ],
  "editors_take": "Relying on historical performance suggests that political shifts in congressional control represent temporary market noise rather than fundamental threats to the long-term growth of the S&P 500.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}