How the Stock Market Will React to the Presidential Elections
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The Presidential Cycle is nonsense! Or is it?
The theory behind the Presidential Cycle is that stocks tend to do well in years 3 & 4 of a president’s term, but poorly in years 1 & 2. Why? That’s one of thing you’ll learn in this video. But more importantly, you’ll learn whether or not the whole thing is true — or just a bunch of “nonsense.”
What’s more, we did some original research here at Wealthpire. Instead of looking solely at all years 3 & 4 and 1 & 2, we look specifically at years 3 and 4 of presidential terms where the president is seeking reelection. After all, the idea behind the cycle is that a president seeking office pulls out all the stops to juice the economy, but an outgoing president would have no reason to.
In this episode, you will learn:
- The Federal Reserve’s role in the Presidential Cycle — as well as the business cycle!
- What are some common criticisms of the Presidential Cycle theory — and just how valid they really are.
- How the Bush administration compared in years 3 & 4 of term 1, versus years 1 & 2 of term 2.
- What this could all mean for stocks and other investments in 2012 and beyond.
We also did some extensive research in looking at how stocks fared during the last two years of the Bush Sr. administration, versus the first two years of the Clinton administration. Then years 3 & 4 of Clinton’s first term, versus years 1 & 2 of his second term — the results were shocking!
Is the Presidential Cycle “nonsense”? Watch this video and then decide for yourself!
Happy Trading!
Manny Backus
CEO, Wealthpire Inc.
How the Stock Market Will React to the Presidential Elections
