The Midterms Are Coming
Last week wrapped up our annual Stansberry Research Conference & Alliance Meeting.
This year we stayed at the Aria Resort & Casino, in the heart of the Las Vegas Strip. The conference – a three-day event where our editors, guest speakers, staff, and subscribers all gather to talk about the biggest themes in the economy and market – was a blast.
It's truly one of my favorite events of the year... I love meeting subscribers and hearing different viewpoints on the markets.
Last Wednesday was Alliance Day at the conference, where our staff shared our best ideas with Alliance members. One highlight, for me, was the "Bull, Bear, or B.S." panel.
It was hosted by Matt Weinschenk, my longtime analyst and Stansberry's current director of research. The panel brought together some of our company's top editors to debate various subjects and decide if we're bullish, bearish, or calling B.S. on them. We talked about everything from AI to housing to even the midterm elections.
I'm going to focus on the midterms in today's issue because, well, anytime politics are brought up, there's a wide range of opinions and emotions.
Interestingly, many editors and analysts on the panel said the midterms didn't factor into their investment strategy. And for good reason...
When it comes to managing your wealth, letting political opinions dictate your portfolio is one of the fastest ways to shoot yourself in the foot. If you're a Republican, you'd miss out on a lot of gains if you weren't invested during the blue years... and vice versa.
While elections spark strong emotions, the truth is that the market doesn't care all that much about red or blue. It mostly cares about things like corporate earnings and interest rates.
But to say midterms are total B.S. would be incorrect, too.
And that's because the market hates uncertainty.
Heading into a midterm election, investors frequently contend with policy debates, shifting legislative control, and proposed changes to tax laws or regulations. This ambiguity tends to hurt valuations and keep capital on the sidelines during the spring and summer months.
Then, as polling data clarifies in October and the election results solidify in early November, market participants get a clearer picture of the upcoming policy landscape. Historically, regardless of which party wins congressional seats, markets can focus again on company profits, business spending, and the broader economy once the political uncertainty is over.
And almost a century of data tells us to expect a strong fourth quarter...
Just take a look at this chart tracking the performance of the S&P 500 Index across the four-year presidential election cycle since 1930...
While the S&P 500 gains an average of 2.9% in the fourth quarter across all years, that figure nearly doubles to 5.6% during midterm-election years.
In fact, October and November are historically the two strongest months of the entire midterm calendar. Since 1930, these two months have resulted in positive returns nearly 70% of the time in midterm years.
It's true that political headlines will always provoke strong reactions and debates. But investors need to separate emotional noise from market reality if they want to make money.
While we can't predict exactly what will happen this year, history tells us that stocks are likely to soar over the next couple months as the election uncertainty clears.
Brett Eversole, my colleague and the editor of True Wealth, knows there is money to be made in the markets as this election cycle continues. He notes that the third year in an election cycle is where the biggest gains are...
Not only that, but Brett believes we're now entering Phase 2 of the AI boom – which could dramatically change the outlook for the entire AI trade. Put simply, Brett says that this next phase could lead to some huge winners and losers as this bull market continues.
Between the midterm elections and AI's Phase 2, there are plenty of opportunities ahead for investors who know where to look. Brett can help with that. Over the past decade, his annualized returns have beaten the average hedge fund's by nearly 4 times.
And now, he can help you find the AI companies with the biggest potential to soar... while the crowd is still looking elsewhere.
Brett covered all the details of the current opportunities in the market in a recent video presentation. Today is the last day to check it out – and get two free recommendations (one stock Brett likes and one he suggests you avoid). Click here for all the details.
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Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
October 7, 2026