November 5, 2026
Every two years, the midterm elections in the US flood global headlines with predictions of policy swings and market turmoil. History suggests investors are better off tuning it out: election uncertainty has yet to stop the world equity markets from marching higher.
Since 1950, the S&P 500 has averaged a healthy 15.12% return in the period following midterm elections, regardless of which party has held power. Warren Buffett has long argued that politics is a distraction from what really drives long-term results: the earning power of great businesses bought at sensible prices. His reminder “price is what you pay; value is what you get” is why looking for strong, well run, quality companies is more prudent than guessing the possible results of election outcomes.
“Price is what you pay; value is what you get.”
— Warren Buffett
Investors who stay patient, focused on value, and maintain a long-term time horizon can let the short-term noise fade while businesses and the global markets keep compounding long after the ballots are counted.
What we are doing
We always write about what we are doing with our own money. We are fully invested and continue to add to our holdings in high-quality growth companies. We advise you do the same. As usual, if you need to discuss any aspect of investing, please do not hesitate to call us or write to us.
Related insight: Why we don’t chase market headlines
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If you’d like to talk through how your portfolio is positioned, or any other aspect of investing, contact Tralucent to schedule a portfolio review.
