Everyone's bracing for midterm volatility. History says that's exactly when you should be paying attention - Yahoo Finance.
Midterm years are historically the weakest of the 4-year presidential cycle: avg +4.6%, biggest drawdowns, highest volatility
The 12 months AFTER midterms ("pre-election years") have returned positive returns in all 18 cycles since 1954, averaging +18.2%
The pattern: uncertainty peaks before the election, fades once the outcome is known, and investors refocus on fundamentals.
Base case for this cycle: a split Congress, meaning fewer big legislative swings and more noise around funding fights and the debt ceiling.
Volatility isn't the risk here. Sitting it out is.