What the midterm blue wave could mean for your 401(k)

What the midterm blue wave could mean for your 401(k)

What the midterm blue wave could mean for your 401(k)

After Democrats swept Congress in the midterms, stocks jumped on 4 November, with the Dow opening up 2.1 percent, the S and P 500 up 1.8 percent and the Nasdaq up 2.5 percent. Analysis of 100 years of market returns found stocks have tended to do better in November in election years, rising 2.4 percent on average compared with 0.9 percent in non-election years, partly because elections remove uncertainty. Experts also note past returns were stronger under a unified government than a divided one, and advise most investors to stay calm and do nothing in response to election swings.

After Democrats swept Congress in the midterms, stocks jumped on 4 November, with the Dow opening up 2.1 percent, the S and P 500 up 1.8 percent and the Nasdaq up 2.5 percent. Analysis of 100 years of market returns found stocks have tended to do better in November in election years, rising 2.4 percent on average compared with 0.9 percent in non-election years, partly because elections remove uncertainty. Experts also note past returns were stronger under a unified government than a divided one, and advise most investors to stay calm and do nothing in response to election swings.

After Democrats swept Congress in the midterms, stocks jumped on 4 November, with the Dow opening up 2.1 percent, the S and P 500 up 1.8 percent and the Nasdaq up 2.5 percent. Analysis of 100 years of market returns found stocks have tended to do better in November in election years, rising 2.4 percent on average compared with 0.9 percent in non-election years, partly because elections remove uncertainty. Experts also note past returns were stronger under a unified government than a divided one, and advise most investors to stay calm and do nothing in response to election swings.