President Joe Biden is not on the ballot at the 8 November mid-term elections, but the outcome will determine how much he can achieve in the second half of his presidential term and how the government can respond to growing recession risks. It will also be an important barometer for the Republican Party and whether Donald Trump will run against Biden in 2024.

Mid-term elections are typically seen as a referendum on the effectiveness of a president and their party during the first two years of their term. The omens are not good with President Biden’s approval at this stage in his presidency below all other modern presidents, including the rating of Donald Trump ahead of the 2018 mid-terms at which he took heavy losses. High levels of partisanship, the high (and rising) cost of living, a weakening economy and falling asset prices are all hurting President Biden and the Democrats. 

Going into this year’s mid-term elections, for example, the market continues to face challenges of fearful inflation, looming recession, aggressive Fed tightening, energy crises and a strengthening U.S. dollar. These uncertainties have played into the superior performance of defensive strategies (such as minimum volatility and high dividend yield) year-to-date. How and when these uncertainties get resolved will be an additional guide to investors as they position their portfolios for Election Day and beyond

@CaptainTiger ,@Tiger_chat ,@MillionaireTiger ,@TigerStars