Why Stocks Historically Rise Prior to a Presidential Election

2015 is a pre-election year, the strongest of the 4-year cycle for stocks, but it is also the seventh year of the President’s term, which historically has not been as strong, said Jeffrey Hirsch, Editor-In-Chief said Stock Trader's Almanac. He added that the only severe loss in a pre-Presidential election year going back 100 years occurred during the Depression. He also said turbulent March markets tend to drive prices up early in the month and batter stocks at month end. In pre-election years, however, Hirsch said March ranks 4th best for the Dow, S&P 500, NASDAQ, Russell 1000 and Russell 2000 with only January, April and December offering better returns.

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