Midweek midterm elections update for June 6th

Midweek midterm elections update for June 6th 

Bottom Line: We're up to our 19th midterm election update. Here's what history tells us about midterm elections:          

Since the advent of the current two-party system (39 midterm elections) we've averaged the President's party losing 4 Senate seats and 30 seats in the House. If that happens this year Democrats would retake control of both chambers of Congress. Democrats only need to flip two Senate seats to retake control and they need 24 seats in the House. History is on the side of the Democrats reclaiming control going into this cycle.       

There are only three times that the incumbent President's party has gained seats (1934 during FDR's first term, 1998 during Bill Clinton's second term and 2002 during George W. Bush's first term) thus only 3 out of 39 midterm elections have resulted in the President's party gaining seats. Here's another way of looking at it... History suggests there's a 92% chance Democrats will gain Congressional seats this year. The question becomes how many. That's where it's helpful to look at the history of generic ballot polls and outcomes. These are the past four cycles:                  

The first number is the average generic ballot polling on Election Day and the second is the actual result:  

  • 2014: GOP +2.4 - GOP +5.7 = GOP +3.3%                  

  • 2010: GOP +9.4 - GOP +6.8 = GOP -2.6%                  

  • 2006: DEM +11.5 - DEM +7.9 = DEM -3.6%                  

  • 2002: GOP +1.7 - GOP +4.6 = GOP +2.9%                  

Polls average being off by about 3% - however history has shown that the party with a generic ballot advantage has always performed the best in the midterm elections. This is analogous to a "home field advantage" and represents about a third of the picture when attempting to determine the likely outcome of elections. As of today, the generic ballot says (average of accredited polling over the past week)...        

  • Current: DEM: +3%                

After gaining back a couple of points last week Democrats gave it back this week and are back to their smallest advantage of the cycle. Over the past week we've received outstanding economic news and progress has been made to get the Singapore Summit with North Korea back on track. And what's the difference in two points? Quite a bit in a tight cycle with control of Congress in the balance.   

Democrats have the advantage and would still gain seats this fall but as of now the narrative has shifted from a potential wave election outcome. This as more states have primaries and we creep closer to the midterms themselves. Democrats have led on the generic ballot by an average of 3% to 12% thus far in 2018. Anything in the 8%+ range would likely produce a "wave" type of election. Anything in the 4% or under range would likely result in Republicans retaining complete control. At 3Democrats would be positioned to pick up 12 seats in the US House and no net changes in the Senate in a typical election cycle – although in this favorable Senate environment for Republicans it's likely that by the time we're past the primaries we'd see Republicans in position to gain a seat or two with a generic 3-point lead for Democrats. 

Once we get past the primaries and can track specific races, we're likely to see a myriad of tight races this year - much more so than in typical midterm cycles. This story is a third of the overall election equation. It's the equivalent of "home field advantage" in a sporting event. Right now, Democrats have a "home field advantage" and are positioned to win seats but as of this week, not enough to overcome their current deficit in Congress. 

Until next week...       


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