We don’t need to look far to find examples of midterms causing trouble for markets. Since 1945, the S&P 500 has gained an average of 3.8% during election years, compared to an average gain of 10.9% during the other three years of a presidency. Markets have not followed that trend so far in 2026; as of Sept. 2, the S&P 500 was up 11.48%.

Why can midterms create turmoil for markets? Uncertainty, mostly.

Elections tend to create a lot of questions and uncertainty. The uncertainty can wreak havoc on markets amid concerns about potential changes or stalls in fiscal, tax, estate, international, and environmental policies.

In the past 80 years, markets have returned 16.3% in the 12 months after midterms on average. Whether this midterm election will continue or break the cycle remains to be seen.

Strategy Spotlight

A new approach to dividend-style income.

The beauty of dividends is that, no matter what is happening with stock volatility, the dividend pays. Except, of course, when they get cut.

In 2009, many dividends from bank stocks were cut by 50-85%

In 2020, many dividends were reduced by 30-80%, with Disney just completely eliminated its dividend.

But what if you could have:

• 4.5- 6% dividend-type payment (that can’t go down, only up)

• With the performance of the investment, the “dividend” will increase

• The annual (or monthly) payment can never go down

• No fees

• Value of investment can’t go down, other than by the “dividend” that is paid.

• Can earn up to 9.5% per year

Interested in learning more? Just hit reply!

In The News

Medicare.gov – Open Enrollment

The article highlights:

• Medicare Open Enrollment runs from October 15 to December 7.
• Changes made during that window generally take effect on January 1 of the following year.
• During Open Enrollment, people can join, drop, or switch Medicare Advantage plans.
• They can also join, drop, or switch a Medicare drug plan if they’re in Original Medicare.
• They can switch between Original Medicare and Medicare Advantage.
• If someone switches back to Original Medicare, they may also need to add a separate drug plan and may want to look at Medigap coverage.
• The article also notes there can be limits on when Medigap can be added, which makes timing important.

Medicare Advantage premiums expected to drop more than 16% in 2027, CMS projects

The article highlights:

• CMS says the average monthly Medicare Advantage premium is projected to fall from $14.37 in 2026 to $12 in 2027.
  • That would be a drop of more than 16%.
• The projection includes Medicare Advantage plans, Medicare Advantage prescription drug plans, and special needs plans.
• The new figures come just before Medicare Open Enrollment begins on October 15.
• The data reflects how insurers are setting premiums, deductibles, and maximum out-of-pocket limits for 2027.
• CMS estimates Medicare Advantage enrollment will reach 34 million people in 2027.1
  • That would represent about 47.4% of all Medicare enrollees.
• CMS expects actual Medicare Advantage enrollment could end up even higher.
• Average prescription drug premiums inside Medicare Advantage plans are also projected to drop by 38%.
• Average standalone Part D premiums are expected to rise by less than $1 per month in 2027.
• More than 99% of Medicare beneficiaries are expected to have access to at least one Medicare Advantage plan.
• About 97% of beneficiaries are expected to have access to 10 or more Medicare Advantage plan options.
• Even with lower average premiums, some insurers have reduced plan offerings in certain markets.

If you have questions on Medicare, Advantage plans, or even health insurance prior to age 65, we can help. We have a team ready to answer your questions and find the best option for you!

Just for Fun

Dad Joke of the Week:

Why don’t football players wear glasses? It’s a contact sport.

This Week in History

1492- Columbus reaches the “New World”

1845 – U.S. Naval Academy opens in Annapolis, Maryland

1967- American Basketball Association debuts

1975 – “Saturday Night Live” debuts

1987 – Whitesnake’s “Here I Go Again” tops the charts

2014- Malala Yousafzai, 17, wins Nobel Peace Prize

What Did it Cost? (apples)

1922- $.65/4 quarts

1944- $.23/2 lbs

1961- $.29/3 lb bag

1984- $.69/lb

2014- $2.49/lb