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PodcastWSJ's Take On the WeekOctober 18, 2026

What the Midterm ‘Affordability Election’ Means for Markets

Guerra expects a narrow Democratic Senate win and House flip, with gridlock historically boosting equity returns ~23%.

  • House likely flips, Senate uncertain: Monica Guerra (Morgan Stanley Wealth Management) forecasts Democrats take the House and a narrow 51-seat 'blue hop' in the Senate, not a wave.
  • Gridlock historically bullish: Guerra cites ~23% higher S&P 500 total returns on average when Congress is split versus a same-party president and Congress scenario.

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Themes, sentiment and reasons are AI-written paraphrases, checked so they never quote an episode. They may contain errors. Not investment advice. Episodes remain the property of their creators.