US midterms bring concerns about Middle East conflict to the fore for DIY investors

With the US midterms taking place on the 3rd of November, 56% of DIY investors – or self-directed investors – say they are concerned about the impact it will have on their investment portfolio, according to new research from Charles Stanley Direct.

This number increases when asking about the Middle East conflict, as 76% of DIY investors express concern about the impact this will have on portfolios – possibly thinking about the direct consequence the US midterm results may have in escalating the war.

• Out of all generations, Boomers are most concerned about the impact the Middle East conflict will have on portfolios (81%), followed by 79% of Millennials, 74% of Gen X and 66% of Gen Z
• Millennials are most concerned about the US midterm elections (63%), followed by 60% of Gen Z, 49% of Gen Z and 42% of Boomers

Looking at other concerns DIY investors have when it comes to their portfolios:

• 71% are worried about rising global debt levels
• 66% are worried about weather shocks and unexpected environmental events
• 64% are worried about a potential AI bubble burst
• 59% are worried about stock market reactions following the Autumn Budget
• Just 46% are worried about gilt market reactions following the Autumn Budget

Rob Morgan, Chief Investment Analyst at Charles Stanley Direct, part of Raymond James, comments: “This year’s events have been significant for markets, from the ongoing Middle East conflict to record-breaking heatwaves. Whether it’s because of duration or scale of the impact, the US-Iran war continues to be a main concern for self-directed investors, and this may only be exacerbated, or mitigated, by the outcome of US midterm elections and how President Trump chooses to respond.

“On the other hand, the impact of the Autumn Budget seems lower down the list of concerns, perhaps signalling fewer investor holdings in UK companies and gilts. For DIY investors navigating these events, broad diversification across geographies, asset classes and sectors will be essential, particularly as we see markets and economies impacted on a global scale. These events are also temporary, and investing consistently and sensibly for the long term will help steady portfolios amid the short-term volatility, seeing investors through the more turbulent times.”

Methodology 

The research was conducted by Censuswide, among a sample of 1,000 DIY Investors in the UK (’Self-Directed’) (natural fallout of amount invested) o defined as; investors who actively choose their own investments (stocks, shares etc), making their own asset allocation decisions o excluding ‘passive investors’ who just invest in managed ‘index funds’/ETFs who don’t select their own individual stock and instead invest a diversified portfolio that is managed by someone else. (Aged 18+). The data was collected between 29.10.2026 – 03.11.2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. We adhere to the MRS Code of Conduct and ESOMAR principles

Raymond James on US midterms: “Midterms result makes further fiscal expansion harder to deliver through Congress”

Oliver Faizallah, Head of Fixed Income Research at Raymond James, comments: “For bond investors, the significance of the midterms is ultimately about what they mean for US borrowing. The result makes further significant fiscal expansion harder to deliver through Congress, potentially easing some of the pressure around government borrowing and Treasury issuance.

“That could be supportive for US Treasuries, but it won’t determine the direction of yields on its own. Growth, inflation and the Federal Reserve remain crucial. If the economy slows and inflation continues to ease, there is a stronger case for Treasury yields to move lower.”