This week has given investors plenty to digest. Between the midterm elections and renewed volatility across the markets, there has been no shortage of headlines or reasons for investors to feel unsettled.

Periods like this are never comfortable, and they are not unusual.

Every market selloff has its own story. The headlines change, the circumstances change, and the reasons investors become nervous change. This week may look different and feel different from previous periods of volatility, yet the underlying dynamics of markets remain much the same.

Markets continually absorb new information, reassess risk and recalibrate.

History provides important perspective. Markets have navigated wars, recessions, financial crises, elections, inflation, pandemics, and countless periods when the outlook felt particularly uncertain. Through all of them, markets have experienced corrections and bear markets, recovered over time, and ultimately moved on to new highs.

There is also useful historical perspective surrounding midterm elections. Looking at completed midterm election cycles since 1950, the S&P 500 has historically performed well in the 12 months following Election Day. While history cannot tell us what will happen this time or how long periods of volatility may last, it reminds us that political uncertainty, market selloffs, and subsequent recoveries are not new.

At CD Wealth, we do not believe successful investing requires predicting what the market will do tomorrow, next month, or even next year. We believe it requires a thoughtful financial plan, appropriate diversification, and the discipline to make decisions based on long-term goals rather than short-term emotion.

Our job is not to react to the emotion of the market. Our job is to provide perspective, remain disciplined, and help keep our clients focused on what matters most: their long-term financial goals and plans.

Volatility Is the Toll We Pay to Invest

S&P 500 various declines per year (1928-2025)

As always, we are watching the markets closely and evaluating what the changing environment may mean for our clients. During periods like this, communication and perspective matter.

The CD Wealth Formula

We help our clients reach and maintain financial stability by following a specific plan, catered to each client. 

Our focus remains on long-term investing with a strategic allocation while maintaining a tactical approach. Our decisions to make changes are calculated and well thought out, looking at where we see the economy heading. We are anticipating and moving to those areas of strength in the economy and in the stock market. 

We will continue to focus on the fact that what really matters right now is time in the market, not out of the market. That means staying the course and continuing to invest, even when the markets dip, to take advantage of potential market upturns. We continue to adhere to the proven disciplines of diversification, periodic rebalancing, and forward-looking strategies, while avoiding reliance on stale retrospective data.

It is important to focus on the long-term goal, not on one specific data point or indicator. Long-term fundamentals are what matter. In markets and moments like these, it is essential to stick to the financial plan. Investing is about following a disciplined process over time.

Source: Carson Investment Research