Election Year And The Stock Market
By Jason Jenkins, Investment U Research
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. There's even a theory out there based on the Super Bowl winner and what the market will do if the champion came from the original NFL or the old AFL. It's true.
However, there is a theory out there that makes a lot more sense, and it's based on some real world principles and practices. 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.