Markets and Elections: Could Three Be Charming Again?
The 2020 presidential election is behind us as is the midterm election, but election influence could be a key element of the stock market again this year.
Each year of the presidential election cycle has unique aspects that set it apart from the other years, but historically the third year of the cycle is the most beneficial for investors.
Since 1930, in the 23 years of the election cycle, the third has had an encouraging record of producing positive results as the S&P 500 has been down in a third year only four times with an average gain for all 23 years of 13.51% and a median gain of 17.27%.
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