Stocks tend to struggle in midterm years like 2026 but historically boom the year after — good news for patient investors looking ahead.

• 2026 is a midterm year, which over 98 years has been the weakest stretch of the four-year cycle.
• Midterm years end up only about 58% of the time, below the normal 73% chance of a positive year.
• The year after a midterm (2027) is historically the best year, ending positive in 22 of the last 24 cycles.
• The two exceptions were the Great Depression and the start of World War II — rare shocks, not normal years.
• Stocks tend to rise before elections because politicians and the Fed pump spending and easy money to keep the economy strong.

Outlook: History points to a soft 2026 followed by strong gains in 2027 and 2028, barring a surprise crisis, war, or pandemic.