Presidential Election Cycle Theory

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Presidential election cycle theory

A theory that stock market trends can be predicted and explained by the four-year presidential election cycle.

Presidential Election Cycle

A theory of market performance stating that markets are weakest in the year following a presidential election, regardless of whether a new president or party take power. This theory held up well until the late 20th century, when the presidents' first years saw strong performance. For example, the first year of George H.W. Bush's presidency had strong market performance, but his administration ended with a recession.

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