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Sunday, March 22, 2009

Economic Influences - Question 44

How does the stock market perform during pre-election years?

Since 1940, pre-election years have been, by far, the best performing years for the market. Realizing that past performance is no indication of future results, the numbers for the past 50+ years for the S&P index with dividends reinvested are:

pre-election year average +21.05%
election year average +12.40%
post-election year average + 7.81%
mid-term election year average +10.23%

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