How does the stock market react in an election years
By submitting your information you agree to the terms of our Privacy Policy Newsletter FAQ Cancel Newsletter Any Time. This is a FREE service from Investment U. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone. People in the market will do anything to gain an upper hand in investing. They will scour past data and events to find a correlation between it and any trends in the market. And being an election year, it becomes a little more prevalent.
It may shock you to hear that no matter what party you vote for, markets may be predestined to do what they are going to do based on Presidential election cycles. History suggests that the stock market and the four-year presidential election cycle follow strong, predictable patterns. The first year of a presidency is characterized by relatively weak performance in the stock market. Of the four years in a presidential cycle, the first-year performance of the stock market, on average, is the worst.
The second year also sees historically below-average performance. Bear market bottoms occur in the second year more often than in any other year. In the fourth year of the presidential term and the election year, the stock market's performance tends to be above average. But first, we need a refresher course on macroeconomics and authorised foreign exchange dealers in pune role in politics over the last 80 years.
Before the Great Depressionwe primarily just worried about supply and demand in the micro-view of economics. However, in the world was introduced to Keynesian macroeconomic theory, which called for governments to prescribe specific fiscal policies so they remodel and ease business cycles.
People had become gun shy of another great crash. A couple of decades later, demand stimulated macroeconomics was seen as gospel and a debate was sparked which has been the subject of many a thesis paper or dissertation over the last how does the stock market react in an election years years.
And the following graph may show just how much euphoria one can create. Marshall Nickles, EdD, in his paper Presidential Elections and Stock Market Cycles: Can you profit from the relationship? This strategy kept Investor 1 out of the market from January 1 of the inaugural year through September 30 of the second year during the test period.
How Does the Market React to Elections? | InvestorPlace
The Table below reveals the how does the stock market react in an election years on both a percentage change basis and dollar return. I know that graph above looks tantalizing, but think about this. During the election cycle, if you invested on October 1 ofuntil December 31st ofyour investments would have been down by 6. You are logged into Investment U Plus.
Urgent Report on China. For immediate access, please join Investment U by entering your email address below. Election Year and the Stock Market by Jason Jenkins Thursday, March 1, Tech Stocks Are Crashing! Is It Time to Panic? Is There a Play on the Comey Testimony?
Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice.
Stock Market Performance During Election Years
We expressly forbid our writers from having a financial interest in their own securities recommendations to readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation.
Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.