Good Time in the Election Cycle

The market adage “sell in May and go away,” worked well this year for about one month. However, the end of May during an election year has often been a good time to buy stocks.

A few years ago, I took all the data and calculated the average market during a Presidential Election Cycle. Historically, a low point has come on May 29th of the election year.

From there until August 3rd of the post-election year, the Dow has gained an average of 23.2%. That’s very impressive for just 14 months.

Let me add that I don’t make investment decisions based on these calendar effects. After all, this is an average of 115 years’ worth of data. I just think it’s fascinating how the market has behaved historically.

Posted by on June 21st, 2012 at 1:01 pm


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