Post Midterms 2026 Special Update: What Now?

Election Day is behind us. Our long-term investment principles are not.

Many of us have had the familiar experience of driving through heavy fog. When visibility is limited, the natural reaction is to slow down, grip the steering wheel a little tighter, and focus on what might be around the next corner. As the fog begins to lift, the road itself has not changed, but being able to see farther ahead can make the journey feel very different.

The months leading up to an election can feel similar to investors. Markets are constantly looking ahead, and elections introduce uncertainty around taxes, regulation, government spending, and economic policy. With Election Day now behind us, some of that uncertainty is beginning to lift.

Markets Prefer Clarity

One of our messages leading up to the election was that political uncertainty can contribute to market volatility. Historically, volatility has often been elevated during midterm election years, particularly in the months surrounding the election. Capital Group research also shows that markets have historically experienced strong periods of growth following midterm elections, regardless of the outcome.

Of course, history is not a forecast. An election does not eliminate uncertainty or guarantee calmer or stronger markets. Interest rates, inflation, economic growth, corporate earnings, and geopolitical developments will continue to influence markets.

We still cannot see everything down the road, but the visibility has improved.

What Does This Mean for Your Portfolio?

Probably less than the headlines might suggest. Elections matter greatly for public policy, but long-term investment results have occurred under many different political environments. The more important question is not “What should I own because of this election?” but “Is my portfolio still appropriate for what I am trying to accomplish?”

Stay balanced.  Remain diversified.  Maintain discipline.  Stay focused on your long-term goals.

A thoughtfully constructed portfolio should not depend on one election, one economic forecast, or one market outcome being correct. Diversification seeks to spread risk across investments and market environments, while your financial plan provides the framework for determining how much risk is appropriate for you.

Your portfolio should fit your life and your goals, not the latest headline.

Looking Down the Road

This election may be behind us, but another source of uncertainty will eventually take its place. That has always been part of investing. At Bond&Devick, it is not our role to predict every turn in the road. It is to help ensure your financial plan and investment strategy remain aligned with where you want to go.

The direction of Washington may change. That does not necessarily mean the direction of your financial plan should.

As always, if recent events have raised questions about your portfolio or financial plan, please reach out. We welcome the conversation.