3 Things You Need to Know This Week | Midterm Miracle, US Jobs, Tax Planning (June 29, 2026)

The episode begins by discussing the 2026 US midterm elections and the historical pattern known as the "midterm miracle," a 9-month period starting in Q4 of midterm election years through the first two quarters of the following year when US stocks rise approximately 90% of the time. The hosts emphasize that markets thrive on stability rather than political ideology, noting that gridlocked government—where Congress and the White House are controlled by different parties—reduces disruptive policy changes and provides market predictability. They caution investors against letting primary season rhetoric drive short-term investment decisions, as political uncertainty is normal and staying invested through election cycles historically outperforms market timing attempts.

The second segment focuses on the upcoming June jobs report, providing context from May's data showing 172,000 non-farm payrolls and a steady 4.3% unemployment rate across three consecutive months of job growth. The hosts discuss how market participants speculate on Federal Reserve policy responses and how voters' economic perceptions may influence midterm outcomes, but they caution that labor data reflects past events rather than future performance, and that voters' economic interpretations are heavily influenced by their existing political affiliations. They recommend against drawing sweeping forward-looking conclusions from employment reports.

The final segment addresses tax-efficient retirement planning, recommending several strategies including Roth conversions (paying taxes upfront for tax-free growth), utilizing Roth IRAs to minimize required minimum distributions, and diversifying across account types including taxable brokerage accounts (for early retirement access), tax-deferred accounts (IRAs and 401k plans), and tax-free accounts (Roth IRAs). The hosts suggest a withdrawal strategy that prioritizes taxable accounts first, then tax-deferred accounts, and finally tax-free accounts to preserve long-term tax advantages. They recommend consulting with tax professionals to develop personalized strategies.