BushFire 2006

Fisher Investments' Research: The Markets do Great before Elections

There are lots of theories out there on how you can make money with the stock market. One of the most reliable is buy timing your buying and selling on the presidential election cycle. This is certainly something that Fisher Investments Research believes as they are strongly recommending that people get into the market right now. Historically buying in the year leading up to the presidential election has been very profitable so it may well be a good idea.

ken fisher One of the best ways to be able to make money in the stock market is to be able to take advantage of trends. One of the most obvious trends that you will come across is that in presidential election years the markets tend to do very well. There are lots of theories about why this is the case but ultimately for the investor it doesn't matter. What matters is that they are able to make money from the trends. That is definitely the case when it comes to the presidential cycle.

According to CEO Ken Fisher of Fisher Investments Research the 2012 election promises to be a very good year for investors. Not only is it an election year but it is a year in which the incumbent is running for re-election. These years tend to be even stronger than the norm for the presidential cycle, especially if the incumbent wins re-election. This is mainly because when a president is trying to hold onto office he will normally make a concerted effort to stimulate the economy in the run up to the election.

There is another reason that the 2012 election year promises to be a good one for the stock market and that is that they have been struggling for a few years now. The markets took a heavy beating a few years ago and they have tended to stay weak ever since. They are clearly waiting for a reason to rebound and the fact that election years tend to be strong may be enough to do it. The expectation that the market will be strong in an election year tends to bring more people into the market which should help it to rebound.

If you are looking to get into the market to take advantage of the run up into the presidential election you want to think about doing it sooner rather than later. The historical data shows that the best time to get into the market is towards the end of the second year of the presidential term. The markets tend to continue to rise from then until the election. Although you have missed the optimal point to get in there is still ample opportunity to make money off of the trend. The market should continue to rise and do so pretty sharply over the next year or so making it an excellent time to get into the market.