Friday, November 16, 2007

Pre Election Year Stock Market Return: Rally After Thanksgiving?

During pre-election years, the market has tendency to move higher during the last month or so of the year. Chart of the Day provides an update comparing the year to date Dow Jones Industrial Average return versus average pre-election year Dow returns going back to 1900.
  • Since 1900, the stock market has tended to outperform during the first six to seven months of the average pre-election year. For the remainder of the year, pre-election performance has tended to be choppy and flat.
  • Going forward, the pre-election year has tended to end the year with a small rally beginning around the time of the Thanksgiving holiday.

Additional election year market information can be found within this blog at the post: The Market and Elections

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