Continue reading...In November of 2016 Americans will choose a new president. A detailed study of history can give us some interesting clues on how the USstock market might behave regardless of who wins.
Many market analysts have noted a general tendency for the stock market to experience a meaningful price bottom roughly every four years. Of course, the exact timing from low to low does not always correspond to an exact four year cycle. Still, there does appear to be some correlation between the action of the stock market and the four year period that extends from one presidential election to the next. This is most commonly referred to as the “Election Cycle.”
The Election CycleThe “Election Cycle” as generally defined, consists of the Post-Election, Mid-Term, Pre-Election and Election years.
The post-election year is the year when the new, or returning, President is inaugurated.
Following the President’s first year in office comes the” Midterm year.” In this second year, congressional...
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