Wednesday, August 3, 2016

Stocks and Elections

Don't get suspicious
Now don't be suspicious
Babe, you know you are a friend of mine
And you know that it's true
That all the things that you do
Are gonna come back to you in your sweet time
--Steve Miller Band

Table shows the pattern between market performance in the three months preceding a presidential election and whether the incumbent party was able to hold on to the Big Chair. Up market, incumbent party usually wins. Down market, incumbent party usually loses.

We can be certain of this: The current administration understands this relationship and will do all in its power to keep the pattern going.

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