What is the ave. market return in the year prior to a Presidential election ( ie, 2003, 1999, etc.)S&P, Dow?
Answer:
Using the DJ averages from the begining of November to the begining of November for years when there is a presidential election (1932-2004) (e.g., November 1931-November 1932), I find the following:
Average one year return on DJIA
All Years: ........... 6.319%
Democrats in office: ..... 10.979%
Republicans in Office ... 1.142%
The numbers by party may be surprising -- but academic studies show that the stock market performs about 9% better per year when democrats are in office. Other Questions and Answers: