Gen Z is treating the midterms like a market event. Boomers are treating them like weather

Key Points:

• A Nationwide Retirement Institute survey found that 72% of Gen Z investors have already adjusted their retirement savings or portfolios ahead of the November elections, compared to just 17% of Baby Boomers.
• Gen Z investors are equally likely to add funds or shift to safer investments, treating the election as a typical market event, while Boomers tend to hold steady due to being closer to or in retirement and often having financial advisers.
• Nationwide’s chief market strategist, Mark Hackett, noted that younger investors’ frequent portfolio changes reflect their comfort with real-time, mobile investing but warned this behavior could undermine long-term growth through compounding.
• Financial advisers surveyed generally recommend maintaining existing investment strategies during election years, citing historical data showing the S&P 500’s average 15% gain in the year following midterm elections since 1950.
• Hackett advises investors to rebalance portfolios periodically based on personal goals and risk tolerance, cautioning against making impulsive changes driven by election uncertainty rather than long-term financial fundamentals.