Growing Expectations for a Midterm Election "Blue Wave" Holds 2 Risks for the 2nd Priciest Stock Market in History

Tomorrow, people from across our great nation will head to the polls or mail in their ballots to chart America's course over the next two years. The Nov. 3 midterm elections can shake up Congress and directly impact the iconic Dow Jones Industrial Average (DJINDICES:^DJI), benchmark S&P 500 (SNPINDEX:^GSPC), and tech-driven Nasdaq Composite (NASDAQINDEX:^IXIC). To be clear, the stock market can thrive regardless of which party is in power. According to online retirement planning site Retirement Researcher, the worst political scenario since 1926 -- a Republican president overseeing a divided Congress -- delivered an average annual return of 7.33%. That's still a more robust average annual return than bonds, commodities, and real estate. The makeup of Congress under President Trump could soon look a lot different. Image source: Official White House Photo by Joyce N. Boghosian.

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