Part 2/11:
Looking back at midterm elections over the past several decades, a consistent pattern emerges: markets generally enjoy a boost in the year following the elections. This bullish trend is attributed to reduced policy uncertainty and the potential for legislative gridlock to limit overly aggressive policy changes by the sitting government. In fact, experts have noted that markets tend to perform best when there's a divided government, known as gridlock, which helps keep legislative actions in check and fosters investor confidence.