The average return for the Dow Jones Industrial Average in the pre-election year tends to be relatively strong. Most of the returns historically occur in the the first 6-7 months of the year. As Chart of the Day notes in their report,
"...One theory to support this behavior is that the party in power will make difficult economic decisions in the early years of a presidential cycle and then do everything within its power to stimulate the economy during the latter years in order to increase the odds of re-election."
|From The Blog of HORAN Capital Advisors|