Just got a letter today from my financial advisor. He claims the midterms and their outcomes often reflect changes in the market and notes that the S&P 500 index has slipped into "correction territory" (defined as a 10% decline from a recent high) three separate occasions this year. Historically, midterm election years are the most volatile of the 4-year presidential cycle because investors are awaiting the outcome.
Sometimes, market participants conclude that the potential for "political gridlock" (a divided congress) is a favorable outcome as that suggests extreme political or economic measures are unlikely.
Either way, since 1950, the U.S. stock market has displayed a sort of "relief rally" after the midterms, so if history repeats itself, we may see a strong performance through the rest of 2018 and into the first half of 2019. He also notes that a infrastructure spending deal and progress on trade could provide further support for the markets, but warns of any debt ceiling debate or a roll back in the tax cuts could create renewed uncertainty, as can increased (if there can be any more) scrutiny of the current administration.
So, since my investments have done quite well over the last 2 years, I must stay aware of any stupid proposals/decisions the Dems make in the house and invest accordingly.
Bottom line is I haven't felt any "pain" in my investments since Obama left office despite the "correction territory" mentioned above.
Of course I could sell a few of my firearms too, since Dems have a history of increasing their value (as does time). All is good
