YESTERDAY's $2.2 TRILLION MARKET CRASH MAY HAVE BEEN JUST THE BEGINNING.
The US is now entering another midterm election cycle, and history shows these periods are usually some of the most dangerous times for markets.
Since 1926, the S&P 500 has suffered an average drawdown of nearly -18% BEFORE US midterm elections.
Some of the biggest crashes in modern history happened during these cycles:
• 1930: -34.8%
• 1974: -41.8%
• 2002: -33.8%
• 2022: -25.4%
Yesterday’s selloff already became the biggest percentage crash and the largest dollar wipeout since April 2025.
The scary part is that today’s market looks even more fragile than previous midterm cycles.
Stocks are near record valuations.
The top 10 companies now control 40% of the S&P 500.
AI stocks became the most crowded trade on Wall Street.
And markets are still heavily dependent on rate cuts that may never come.
At the same time:
• Oil is back above $90
• Inflation remains sticky.
• The Fed is still hawkish.
• bond yields are rising
• and liquidity conditions are tightening globally
History shows markets usually panic into midterms because investors hate uncertainty.
That panic often creates violent crashes before the election actually happens.
#Binance
The US is now entering another midterm election cycle, and history shows these periods are usually some of the most dangerous times for markets.
Since 1926, the S&P 500 has suffered an average drawdown of nearly -18% BEFORE US midterm elections.
Some of the biggest crashes in modern history happened during these cycles:
• 1930: -34.8%
• 1974: -41.8%
• 2002: -33.8%
• 2022: -25.4%
Yesterday’s selloff already became the biggest percentage crash and the largest dollar wipeout since April 2025.
The scary part is that today’s market looks even more fragile than previous midterm cycles.
Stocks are near record valuations.
The top 10 companies now control 40% of the S&P 500.
AI stocks became the most crowded trade on Wall Street.
And markets are still heavily dependent on rate cuts that may never come.
At the same time:
• Oil is back above $90
• Inflation remains sticky.
• The Fed is still hawkish.
• bond yields are rising
• and liquidity conditions are tightening globally
History shows markets usually panic into midterms because investors hate uncertainty.
That panic often creates violent crashes before the election actually happens.
#Binance