Presidential Cycle Year 3

Recently, I’ve read GMO’s quarterly newsletter, and I came across Presidential Cycle Year 3. Now this theory is very interesting, and it seems to work. Presidential Cycle Year 3 states that in the third year of the President’s term, which is currently September 30 2010 – September 30 2011, the overall stock market will go up. Now here’s the evidence that supports the Presidential Cycle Year 3 theory.

Dow Jones Industrial Average (.DJI)

September 30 2010 – September 30 2011: so far + 16.25%

September 30 2006 – September 30 2007: +20.75%

September 30 2002 – September 30 2003: +16.62%

September 30 1998 – September 30 1999:+27.95%

September 30 1994 – September 30 1995: +52.36%

September 30 1990 – September 30 1991: + 19.65%

September 30 1986 – September 30 1987: +48.86%

Some people say that the Presidential Cycle Year 3 works because in the third year of the President’s term, he is facing the upcoming election. The government purposely manipulates the market so that everything seems good; that way the President has a better chance of getting re-eclected in the next election. Now who know’s if this reason is the truth. But even if it’s not, this Presidential Cycle Year 3 theory still holds true.

Unfortunately, I just learned about this cycle, so it might be too late to get in on this cycle and make a few bucks. :(

 

2 thoughts on “Presidential Cycle Year 3”

  1. Wonderful blog! Do you have any suggestions for aspiring writers? I’m planning to start my own website soon but I’m a little lost on everything. Would you suggest starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m completely confused .. Any tips? Bless you!

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