Jim Paulsen, writer of the Substack newsletter 'Paulsen Perspectives', discusses with Yahoo Finance's Brooke DiPalma his outlook for markets after the midterm elections. He argues the common expectation of a strong year-end rally is overstated, since when tightening conditions intensify during the summer, the November-to-April period has historically been much weaker than average. He cites this summer's spikes in oil prices and bond yields, a flatter yield curve, slowing real money supply growth, a stronger US dollar, falling real wages and rising inflation as restrictive forces. Paulsen suggests investors may be disappointed if markets do not improve after the midterms, and that a shift from overweight positions to more defensive ones could accelerate the downside.
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midterm electionsinflationoil pricesUS dollarS&P 500
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Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/23/2026 | 704.40 |
| Change that session | -0.01% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/23/2026 | 759.97 |
| Change that session | -0.52% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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