As investors approach 2026, they need a game plan for a historically volatile scenario.

The election cycle has predictable trends that we all need to heed.

Here is the midterm election year strategy for 2026.

Our portfolios have benefited from Mega-cap dominance in the last few years. At last measure, the top 10 stocks in the S&P 500 now account for 40% of the pie.

But could this dominance take a back seat in 2026? I believe it is possible.

Now, I’m not calling for a bear market. I’m simply suggesting we should be open to a change in leadership as we head into 2026.

This stance revolves around the weakness that typically comes in midterm election years.

What’s unique about today’s market is we are in a rate-cutting cycle. And if President Trump announces a dovish Fed chair, rates can spiral fast.

This should boost value-oriented areas rich in dividend income.

Recently those quiet sectors have gotten a boost of life…and I believe they can generate a lot of alpha next year.

Disclosure: This recap uses AI to better explore our post here: https://moneyflows.com/blog/midterm-election-year-strategy-for-2026/

Remember none of this is personal advice of any kind. This is for entertainment and informational purposes only.