In last week’s column I discussed academic studies that confirm the remarkable consistency of the market’s annual seasonal pattern, how with few exceptions markets in the majority of countries tend to make most of their gains in the winter months, and experience most of their serious corrections and bear market declines between May and November.
It’s the Four-Year Presidential Cycle.
The history of the Presidential Cycle is that the economy and stock market tend to have problems in the first two years of each new president’s term, and then recover and be robust over the last two years of the term. » Read more: Looking ahead to 2010! December 31, 2009
