These stocks and ETFs can beat the ‘sell in May’ slump — and dodge the 2026 midterm blues

MarketWatch columnist Mark Hulbert advises investors to adjust portfolios ahead of the 2026 midterm elections, citing historical "Sell in May" patterns that favor defensive strategies from May through October. The traditional "Halloween indicator" strategy—exiting stocks May 1 and re-entering October 31—has outperformed in midterm years, but Hulbert suggests a less extreme alternative to avoid cash exposure. Instead of exiting markets, investors can rotate into defensive sectors like utilities, healthcare, and consumer staples, which historically resist summer volatility during election cycles. Hulbert’s analysis leverages Hulbert Ratings data, tracking audited newsletters to validate the strategy’s historical success in mitigating seasonal downturns without full market withdrawal. The approach targets 2026’s political uncertainty, offering a "stay and play" method to navigate both midterm jitters and typical summer market lulls without liquidating holdings.