When Markets Tremble

A Perspective on Today's Technology Selloff, Midterm Elections, and the Resilience of Long-Term Investing

Thursday, November 5, 2026

Wall Street is having one of those days.

Technology stocks are experiencing a sharp selloff, financial headlines are filled with warnings, and investors are once again being reminded that the stock market does not move in a straight line.

As of midday Thursday, the technology-heavy Nasdaq Composite had fallen as much as 5%, while the semiconductor index had declined as much as 11%. Some of the market's most recognizable technology companies are experiencing substantial losses as investors reassess artificial intelligence spending, corporate valuations, and the potential implications of Tuesday's midterm elections.

Certainly, these are significant moves, and they deserve our attention. But do they warrant abandoning a carefully constructed, long-term investment strategy?

We don't believe so.

At Riverfront Capital Strategies, we have long believed that successful investing requires something considerably more valuable than the ability to predict tomorrow's market movement. It requires faith, patience, and discipline.

And on days like today, those qualities become particularly important.

The Market Has Been Here Before

While every market decline has its own catalysts, volatility itself is hardly unusual.

Throughout history, investors have navigated wars, recessions, inflation, political upheaval, financial crises, and extraordinary technological change. Each generation has experienced moments when the headlines suggested that the challenges facing the market were unprecedented.

Yet the American economy has demonstrated a remarkable ability to adapt, innovate, and grow.

History has consistently demonstrated that temporary uncertainty and long-term economic opportunity can coexist.

This does not mean every company survives, every investment recovers, or every market decline is followed by an immediate rebound. There have been extended periods of disappointing returns, and some losses have been permanent.

But history has consistently demonstrated that temporary uncertainty and long-term economic opportunity can coexist.

The important distinction for investors is understanding the difference between a market experiencing volatility and a financial plan that is no longer appropriate.

Those are two very different things.

What History Tells Us About Midterm Elections

With the 2026 midterm elections taking place just two days ago, it is worth examining how markets have historically behaved following these political milestones.

The results may surprise you.

• 15.4%  - Average S&P 500 price gain in the 12 months following midterm election since 1950.                                                  

•  19 of 19 -   Positive 12-month periods following each midterm election from 1950 through 2022.

That is an impressive historical record.

Of course, these statistics do not mean the market will rise 15% over the next year, nor do they suggest the recent volatility is necessarily behind us. Nineteen election cycles represent a relatively small sample, and each period involved different economic circumstances.

Nevertheless, the historical pattern offers an important reminder: Political uncertainty, however unsettling in the moment, has not prevented markets from producing strong long-term results.

The stock market is neither Democrat or Republican.

Markets generally dislike uncertainty. Elections introduce questions about taxes, regulation, government spending, and economic policy. Once elections are over, some of that uncertainty begins to diminish, allowing investors to refocus on corporate earnings, economic growth, and business fundamentals.

And notably, this historical pattern has not depended on which political party wins.

The stock market is not a Republican market or a Democratic market. It is a market driven over time by businesses, innovation, profitability, and the economic activity of millions of Americans.

Headlines Are Not an Investment Strategy

Perhaps the greatest danger during a market selloff is not the decline itself. It is the temptation to react emotionally.

Financial news operates in a world of immediacy. Every hour brings new developments, new predictions, and new explanations for why stocks are rising or falling. Unfortunately, fear attracts attention, and dramatic headlines can make temporary market movements feel like permanent threats.

But consider this: If an investor sells stocks because of today's frightening headlines, what will persuade that investor to buy them back? Will it be when the headlines become positive again? When the market has recovered? When everyone feels comfortable?

By that point, a substantial portion of any recovery may already have occurred.

Attempting to move in and out of the market based on news headlines requires an investor to make two difficult decisions correctly: when to sell and when to buy again. Consistently succeeding at both is extraordinarily difficult. Headlines alone are not a reason to buy stocks, and headlines alone are not a reason to sell them. Investment decisions should be guided by thoughtful analysis and a disciplined strategy, not by the emotional temperature of the day's financial news.

Three Questions Worth Asking During Market Volatility

Rather than asking what the stock market will do tomorrow, we believe investors should ask themselves three more meaningful questions.

First, have my investment objectives changed?

Whether you are accumulating wealth, preparing for retirement, generating retirement income, or preserving assets for future generations, your investment portfolio should serve a clearly defined purpose.

If your objectives and financial circumstances have not changed, a difficult day on Wall Street may not require any change to your investment strategy.

Second, does my portfolio still reflect my risk tolerance?

Market declines can reveal the difference between the risk we think we can tolerate and the risk we are emotionally prepared to experience. A well-constructed portfolio should reflect your time horizon, liquidity needs, income requirements, and ability to withstand temporary losses.

If today's volatility is creating more anxiety than you anticipated, it may be an appropriate time to review your asset allocation and overall risk exposure. There is nothing wrong with reassessing risk. The important thing is to do so thoughtfully rather than impulsively.

Third, am I managing my investments or allowing my emotions to manage them?

Fear and greed are powerful forces.

Fear can convince us to sell quality investments at depressed prices. Greed can persuade us to take excessive risks when markets are soaring. Neither emotion is a particularly dependable investment adviser.

Discipline does not mean ignoring risks or refusing to make adjustments. It means making decisions for sound financial reasons rather than emotional ones. Sometimes the right decision is to rebalance. Sometimes it is to reduce a concentrated position or ensure adequate liquidity. And sometimes the most appropriate decision is simply to stay the course.

Resilience Requires Patience

Today's technology selloff is a reminder that even the most promising industries and successful companies can experience significant declines.

Artificial intelligence may continue to transform the global economy, but that does not mean every company associated with it will meet the market's expectations or justify its current valuation. Innovation creates opportunity, but enthusiasm can also create excess.

Review your plan. Understand risk. Manage your emotions.

This is why diversification, thoughtful portfolio construction, and ongoing risk management remain so important. We cannot eliminate market volatility. Nor can we predict precisely when the next decline or recovery will occur.

What we can do is build financial strategies designed to navigate a variety of market environments while remaining focused on what matters most to each investor.

At Riverfront Capital Strategies, we frequently remind our clients that life events are far more important than market events. Your retirement, your family, your financial independence, your charitable aspirations, and the legacy you hope to leave are not defined by today's closing price on Wall Street.

Those goals deserve a strategy built to endure far more than a single trading session.

A Final Thought: Keep Your Perspective

There will always be another election, another economic concern, another disappointing earnings report, and another frightening headline. Markets will rise, markets will fall, and uncertainty will remain a constant companion to investing. History offers encouragement, but it does not provide guarantees.

The investors who successfully navigate these periods are not necessarily those who predict every market turn. More often, they are those who understand their objectives, respect their tolerance for risk, remain appropriately diversified, and resist allowing short-term emotions to dictate long-term decisions.

So, as today's headlines compete for your attention, we encourage you to remember why you invested in the first place.

Review your plan. Understand your risk. Manage your emotions. And above all, maintain perspective.

Faith, patience, and discipline are not merely virtues for favorable markets. They are most valuable when markets become uncomfortable.

As always, reach out to us if you have any questions!

Jim Pannell, Managing Principal

Riverfront Capital Strategies

Clarity Creates Confidence.

Market observations reflect information available during trading on November 5, 2026, and are not final closing figures. Historical performance is not a guarantee of future results. All investing involves risk, including possible loss of principal. Diversification does not guarantee a profit or protect against loss. This commentary is for general informational purposes and is not individualized investment advice.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  All performance referenced is historical and is no guarantee of future results.  All indices are unmanaged and may not be invested into directly.