The midterm elections in the United States are still six months away, but there are many stocks that are getting a boost. Elections have consequences for policy initiatives, and that’s particularly true for midterm elections.
S&P Dow Jones research shows that for mid- and small-cap companies, cross-sector effects in congressional election months were greater than average 83% of the time in months with only congressional elections, outpacing presidential election months at 67%. This suggests midterms may actually be more disruptive to sector relationships than presidential elections, even if they receive less attention.
