U.S. Midterms: Policy Implications Matter More Than Political Outcomes

Principal Financial Group 1.29K Followers Follow Summary Trade policy, geopolitical tensions, affordability pressures, AI-related concerns and conflict in the Middle East have all shaped the investment outlook. While the composition of Congress will undoubtedly influence policy at the sector level, particularly highly contested sectors such as healthcare, election outcomes alone are unlikely to alter the broader economic or market outlook. Equity market dynamics today have largely reinforced the historical lesson that economic fundamentals matter more for performance than politics. Mohd Azrin/iStock via Getty Images By Magdalena Ocampo, Market Strategist | Christian Floro, CFA, Market Strategist | Seema Shah , Chief Global Strategist There has been no shortage of uncertainty over the past year. Trade policy, geopolitical tensions, affordability pressures, AI-related concerns and conflict This article was written by Principal Financial Group 1.29K Followers Follow The Principal Financial Group (The Principal®) is a global investment management leader offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500®, the Principal Financial Group has $519.3 billion in assets under management1 and serves some 19.7 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com. Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Princor Financial Services Corp., 800/247-1737, Member SIPC and/or independent broker/dealers. Principal National, Principal Life, Principal Funds Distributor, Inc. and Princor® are members of the Principal Financial Group®, Des Moines, IA 50392. Investing involves market risk, including possible loss of principal.