Midterm election years historically bring volatility to the S&P 500, with an average drop of 1.1% in the 12 months leading up to elections. The 2022 midterms saw a 22% decline. A three-year market cycle often leads to weaker years following strong gains, creating opportunities for investors to prepare for potential corrections.

Market experts like Tom Lee foresee a 10-15% correction, emphasizing the need for risk management. Traders should expect fragile rallies and increased volatility, while investors can view pullbacks as buying opportunities. Understanding the market cycle helps navigate uncertainty and capitalize on post-midterm year gains, which average 16.3%.

Read more at Yahoo Finance: Investors Need to Get Ready for a Stock Market Correction in 2026. Here’s Why.