The Mid-term Election Miracle That Will Soothe Stocks

After a difficult, fearful first half, so many worry only worse lies ahead. But this year’s second half holds a secret stock market force hiding in plain sight: America’s midterm elections. Yes, those raucous contests voters hate. They routinely deliver the relative or absolute gridlocked, do-nothing governments stocks love—and buoy markets in route. Let me explain.

American investors routinely squabble over whether Democrats or Republicans are “better” for stocks and the economy. They fearfully parse administration talking points and policy positions, presuming they must spell trouble. But this is mostly theater. Look beyond it and see: in the approximate 30 months ahead stocks pre-price they don’t much prefer one political party or politician over another. Their big concern is big, controversial, economically significant legislation.