In 2025, the political acronym for the year was TACO (Trump Always Chickens Out)—a reminder of how often major policy initiatives struggled to reach completion. As we turn toward 2026, a new acronym has taken center stage: Big MAC, short for “Midterms Are Coming.”
Financials, which carry significant weight in many Value benchmarks, appear particularly exposed. Among the most notable proposals is a potential 10% cap on credit card interest rates. While it remains unclear whether such a cap could realistically be implemented, even the possibility introduces a new layer of risk for the sector.
As we approach the midterms, investors should expect policy‑driven volatility to remain an important factor. Whether these initiatives translate into lasting structural changes or remain campaign‑season positioning, industry‑specific policy action is likely to play a defining role in the months ahead. Download a copy of this recent report titled 'Cyclicals lead a broadening rally,' by completing the form to the right.
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