Over the past few months, we've had more conversations with clients who are understandably nervous about the markets. Between wars, inflation, interest rates and Trump, there has been no shortage of things to worry about. Yet despite all the noise, markets have held up remarkably well. Perhaps we've become a little spoiled by the strong returns earlier in the year. Apparently, when stocks don't go up every week, something must be wrong.

One lesson we've learned over many years of investing is that trying to time the market rarely works out as planned. Selling when things look uncertain is relatively easy. The difficult part is knowing when to get back in. Markets have an annoying habit of recovering before the headlines improve, often leaving investors watching from the sidelines.

This week's U.S. midterm elections provide an interesting historical perspective. Since 1991, the S&P 500 has risen in the 12 months
following every midterm election, averaging gains of approximately 17%. November and December have also historically been two of the stronger months for stocks. Of course, history offers encouragement, not guarantees. If investing were as easy as following the calendar, we'd all have retired years ago.

Source: YCharts. 2026 Midterm Election: How Do Markets Historically Respond? Oct 15, 2025.

We remain constructive on the longer-term outlook. Corporate earnings, economic growth, inflation and interest rates matter far more than political headlines. Markets don't move higher in a straight line, and periods of consolidation are perfectly normal.

Sometimes the biggest risk for investors isn't being in the market when it falls. It's being out of the market when it rises.

I have also included a piece from our Global Asset Management team with commentary on potential implications of the 2026 US midterm elections.

As always, if you have any questions, please feel free to give us a call at any time.

Have a great weekend.

Milan