Institutional Investing / Macro Minutes

Macro Minutes: Midterms and Equity Markets

midterms and equity markets thumbnail image

In our most recent Macro Minutes video, Capital Markets Research Analyst Luke Puetz explains how Fisher Investments views the upcoming US midterm election given todayโ€™s inflationary environment and discusses how it could impact equity markets.

Key Points

  • Equity markets are about to enter the phase in the US presidential election cycle with the strongest historical returns, the three consecutive quarters that begin with the midterm election.
  • The president’s party tends to lose seats in midterm elections, often resulting in a gridlocked government that produces fewer legislative changes, which creates a more stable and orderly environment for business.
  • Historically, gridlock promotes a “goldilocks” environment of slow-steady growth with low inflation. For this reason, given today’s uniquely high inflation and fears of tight monetary policy, the upcoming midterm could be a uniquely powerful tailwind for equities.

Transcript

See Our Institutional Insights

Stay on top of the latest investment trends and developments with our views and research.

A man smiling and shaking hands with a business partner

Contact Us

Give our knowledgeable team a call today to learn more.

1-800-550-1071

Contact Us Today