A lot of investors put enormous emphasis on seasonal trends and the Presidential cycle. I can’t say that I do, but it’s always an interesting study in historical market trends. According to Jeffrey Hirsch and the Stock Traders Almanac next year doesn’t bode well:
“We’ve got a sitting president that has won re-election, normally the post-election year is not great, you see a sell-off,” says Hirsch. “Sitting presidents winning has not been the greatest performance, it’s usually flat to down.”
Check out Hirsch’s chart below showing the Dow Jones Industrial Average’s performance in the year following an election.