Now that the election is over, we can return our attention to a much-more-pleasant and -productive pursuit: Making money in the markets!
Today we’re taking a quick look back at market trends following past elections, including the sectors that have thrived since 2008. We’ll also examine what the Presidential Election Cycle Theory might be predicting this time around. Be sure to watch today’s video for the details!
For your trading profits,
P.S. Find out how to gain instant access to a baker’s dozen of potential presidential-profit doublers — investments that could double your money in the next 12-18 months — by clicking here right away!
Hi, this is Sean Brodrick for Uncommon Wisdom Daily.
The election is finally over. Now, we can turn our attention to something much-more-pleasant: Making money in the markets.
Have you heard of the Presidential Election Cycle Theory? It was developed by Yale Hirsch, the founder of the Stock Trader’s Almanac.
The theory states that stocks decline in the first year immediately following the presidential election, no matter who wins, then go up over the course of the next three years. Some investors using this theory have decided to sit out the markets or go short.
The problem is that the Presidential Election Cycle Theory is only an average, and it’s proven not to be very reliable. For example, the Dow Jones Industrial Average actually rose in the first year following the elections of George H.W. Bush and Bill Clinton. In fact, the Dow gained more than 25% in Papa Bush’s first year, and 20% and 36% in the years following Clinton’s two victories.
In case you’re wondering, the market did decline in the first years following George W. Bush’s wins in 2000 and 2004. But the real question is, what happened in that first year after Barack Obama was elected to his first term — from November 2008 until November 2009? The answer is the Dow rose 12%.
I’m not saying history will repeat itself. But there ARE stocks that should be helped by President Obama’s political policies.
Take a look at this chart from Bespoke Investment Group. It shows that since the last election, consumer discretionary stocks have left every other sector of the stock market in the dust.
Consumer discretionaries include everything from Comcast to Home Depot to Disney to Amazon. Right behind them were telecom and industrial stocks. And on the other side of the spectrum were the financial, utilities, and energy sectors.
Some analysts are predicting more of the same over the next four years. But President Obama has already rolled out a new economic agenda for his next four years. And Obama’s economic plan — and the stocks that should benefit — are covered in the new Weiss “Election Day Survival and Prosperity Guide.”
My advice would be to ignore the broad-brush models for now. Instead, I recommend you look for select stocks that should do well in the current economic environment, helped along by political policies that will be in place thanks to the election results.
To get these red-hot picks, just go to UncommonWisdomDaily.com/ElectionGuide. They’ll help you make the most of the next four years.
I’m Sean Brodrick for Uncommon Wisdom Daily. Thanks for watching.