Midterm Elections and Your Investments: What to Know

The votes are in, the political landscape has shifted, and investors may be wondering what comes next.

With Democrats gaining control of both the House and Senate in the 2026 midterm elections, Washington is entering a period of divided government. While the results may influence policy decisions over the next two years, history suggests that election outcomes alone aren't necessarily a reason to rethink your investment strategy.

At EmVision Capital Advisors, we understand that political uncertainty can raise questions about your financial future. The good news? When it comes to investing, there's often more to the story than what's happening in Washington.

Here's what recent market research tells us and what it could mean for your financial plan.

Does Divided Government Impact The Stock Market?

With control of Congress shifting, the next two years could bring more political gridlock as lawmakers and the White House work through competing priorities.

While gridlock may sound concerning, history suggests that markets have navigated divided government quite well.

According to research shared by Clark Capital Management Group, one of EmVision's investment partners, the S&P 500 has historically generated average annual total returns of:

• 9.9% during periods of divided government
• 8.0% during periods of single-party control

These figures reflect historical averages from 1951 through 2023, including dividends.

Of course, past performance doesn't guarantee future results. However, the data offers an important reminder: Markets have historically found opportunities to grow under a variety of political circumstances.

What History Tells Us About Midterm Elections

Election years often bring heightened emotions, uncertainty, and plenty of predictions about what might happen next.

But looking back can provide some helpful perspective.

Clark Capital's research highlights an interesting historical trend: In all 19 midterm election years since 1950, the S&P 500 experienced positive returns during the six-month period following October 26, with an average gain of approximately 15.4%.

That's an encouraging historical pattern, but it doesn't mean investors should expect the same outcome this time around.

The bigger takeaway is that short-term political uncertainty hasn't necessarily prevented markets from moving forward.

And for long-term investors, maintaining perspective through these periods can be just as important as understanding the headlines themselves.

Beyond Politics: What's Really Driving The Markets?

While elections tend to dominate the news cycle, they're only one piece of a much larger economic picture.

Corporate earnings, economic growth, inflation, interest rates, and consumer spending all play important roles in influencing market performance.

Recent data highlighted by Clark Capital points to some encouraging economic fundamentals:

• Strong corporate earnings: Approximately 86% of S&P 500 companies that had reported third-quarter earnings exceeded analyst expectations.
• Continued earnings growth: Reported results and estimates for companies yet to report reflected a 31.9% year-over-year earnings growth rate.
• Economic resilience: The U.S. economy expanded in 20 of the previous 21 quarters, with third-quarter GDP growing at a 3.4% annualized rate.

These figures suggest that, despite political uncertainty, businesses and the broader economy continue to demonstrate areas of strength.

That doesn't eliminate market risks or guarantee continued growth. It does, however, reinforce why investors should consider the bigger picture rather than focusing on any single event.

What Should You Do With Your Investments Now?

For most long-term investors, an election result alone isn't a reason to make major changes to a financial plan.

Instead, this may be a good opportunity to revisit a few important questions:

• Are your investments aligned with your goals? Your portfolio should reflect what you're working toward, whether that's retirement, financial independence, or building a legacy for your family.
• Are you comfortable with your level of risk? Market fluctuations are a normal part of investing. Your investment strategy should account for your timeline and ability to withstand periods of uncertainty.
• Is your portfolio appropriately diversified? Diversification can help manage risk by spreading investments across different asset classes and market segments, although it cannot eliminate the possibility of losses.
• Have your financial circumstances changed? Changes in your life, goals, or financial needs may warrant adjustments to your strategy, regardless of what's happening in Washington.

The goal isn't to predict every market movement. It's to have a thoughtful strategy designed to support your financial future through changing market conditions.

Your Financial Future Is Bigger Than Any Election

Elections come and go. Political priorities shift. Markets experience ups and downs.

But your financial goals are about much more than any single election cycle.

At EmVision, our focus remains on helping you make informed decisions, stay prepared for uncertainty, and feel confident in the financial plan we've built together.

If recent headlines have raised questions about your investments or you'd simply like to revisit your strategy, we're always here to help.

Let's keep the focus where it belongs: on you, your goals, and the future you're working toward.

 Johnathon Opet, CFP® is a financial advisor located at EmVision Capital Advisors, 251 W. Garfield Rd. ​Suite 155 Aurora, OH 44202. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (330) 954-3770 or at info@emvisioncapital.com.

Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Additional advisory services offered through EmVision Capital Advisors, LLC are separate and unrelated to Commonwealth. Fixed insurance products and services are separate from and not offered through Commonwealth Financial Network. Registration as an Investment Adviser does not imply any level of skill or training. 

Source: Clark Capital Management Group, Market Update: Midterm Elections, November 4, 2026.

This article is for informational purposes only and should not be considered individualized investment advice. Historical performance is not indicative of future results. Investing involves risk, including the potential loss of principal. The S&P 500 is an unmanaged index and cannot be invested in directly. Opinions and economic data are as of the date of the source material and are subject to change.