November 6, 2026
Hi Reader
Last week I shared the five things that scare me about retirement. One of you kindly pointed out a big one I left off the list: our health. You're absolutely right, and I'll come back to it soon.
This week, though, let's talk about a fear that shows up every couple of years: elections, and what they might do to our retirement savings.
Whatever you think of Tuesday's results, I'm NOT here to talk politics. I'm here to talk about your money..
A statistic I love
Since 1950, the S&P 500 has been higher 12 months after every single midterm election. That's 19 for 19, with an average gain of roughly 15%.
(Sources: Election Year Stock Market History: What the S&P 500 Has Done After Every Midterm Since 1874 | The Motley Fool)
I'd always heard it as "a divided government is good for the market." But the pattern has held no matter who won. The likeliest reason isn't politics at all. It's that the uncertainty ends, and markets hate not knowing.
The honest part
I'll admit, this statistic lets me breathe a little sigh of relief after so much volatility in the stock market recently. But streaks can end.
And after many years in finance, here's what I know: stocks are expensive right now. By several measures I watch, including one of Warren Buffett's favorites, prices are at or near record highs. On top of that, a lot of the market is riding on just a handful of companies, and many of them are betting big on AI. If you own an S&P 500 index fund, you may be far less diversified than you think.
So no, this isn't a guarantee. But an election, by itself, has rarely been a good reason to panic.
What I'm doing instead
Nothing dramatic. I'm not trading on the headlines, I'm keeping my cash cushion in place, and I'm checking my plan instead of my emotions. Boring? Yes. That's the point.
In this week's blog post, I dig into the full history (all the way back to 1874), the four valuation measures I'm watching right now and what they're telling me, and the simple steps I'm taking to protect my retirement savings.
What Happens to the Stock Market After a Midterm Election?
I'd love to hear from you
Have you ever made a money move you regretted because of the news? Hit reply and tell me. No judgment here. I've been tempted too.
Warmly, Wendy
Quote of the Week
"The stock market is a device for transferring money from the impatient to the patient." — Warren Buffett
Recent Posts
Something I'm Loving:
Getting extra protein with Rival Whey Clean Protein Powder (Chocolate)
My Other Favorite - Honey & Stars - Collagen and Protein Bars
A Small Favor
Know someone who's been losing sleep over the election and her retirement savings? Forward this email to her. A little history can be very calming.
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