Another*s

版权声明：转载时请以超链接形式标明文章原始出处和作者信息及本声明
http://anotherz.blogbus.com/logs/30929642.html

(From  A cycle believer - Bennet Sedacca)

The greatest cycle of them all, and the one that I believe most influences markets, is the presidential cycle. For those not familiar with it, it goes like this:

1. What every first-term President wants is a second-term.

2. What every second-term President wants is:

a) a great legacy.

b) their party to remain in office.

The numbers speak for themselves: Stock prices and presidential approval ratings are almost 100% correlated.

According to a Pepperdine University study, if you invested $1,000 in the Dow Jones Industrial Average on January 1 of the first year of every Presidential term and sold on October 15th of the second year for every year since 1950, your $1,000 would today be worth approximately $650, without adjusting for inflation.

On the other hand, had you invested $1,000 on October 15th of the second year of every term and sold on December 31st of the last year of every Presidential term since 1950, your $1,000 would now be worth more than $70,000.