Published on October 26, 2026

October 2026 Market Insights - Politics and Portfolios: Themes Driving the Midterms - Part II

As the U.S. midterms approach, concerns around affordability, interest rates, AI and geopolitical uncertainty are shaping voter sentiment, while raising questions about what the election could mean for markets and investors.

Written by Carol Schleif, CFA, SASB-FSA

October 2026 Market Insights - Politics and Portfolios: Themes Driving the Midterms - Part II

Plenty of twists and turns have accompanied this year’s U.S. midterm election season. From substantive changes in mid-cycle gerrymandering and campaign finance to shifting concerns relative to AI, spiking interest rates and the inflationary impact of unresolved hot wars, nerves are on edge. As was the case when we wrote on this topic a few months ago (Politics and Portfolios – part I), agita over high prices, stagnating wages and shifting employment dynamics is still front and center. The mounting anger (or apathy) is likely to motivate (or dissuade) voters in deciding whether or how to vote. Mixing politics and portfolios is a fraught undertaking in the best of times – and one we typically steer clients well away from. Still, key issues with the capacity to reach across Main Street AND Wall Street are at play for the election itself and for what may come next.

Click to read: October 2026 Market Insights - Politics and Portfolios: Themes Driving the Midterms - Part II