New York Stock and Exchange Board was found March 8, 1817. In the years that followed, people from all walks of life have developed beliefs that define their logic about the stock market cycles. Throughout human history, humans have attempted to relate cycles (natural and artificial) to all aspects of life as we know it. These beliefs range from planetary alignment, prophesy, modern computations, outcome of sport events, and even presidential elections. A profession has grown, feeding on the human need to explain and make sense of the stock market cycles. From this profession many theories have come forth, each theory stemming from a belief that explains the stock market cycles and will hopefully predict future outcomes. One such cycle is The Presidential cycle. Many believe the president’s time in office can influence the stock market. This cycle has been the center of debate for many years. Untold hours spent pouring over stock market trends, comparing the facts to the president’s time in office since 1817. …show more content…
The president’s time in office start with an election, an event fueled with emotion and expectation of the nation. This paper will explore this event to see if real evidence exists to decide whether the Presidential election influences the stock markets.
Presidential Cycle Defined The stock market has a cycle of its own. So does the Presidents time in office. Of which a theory exist that the Presidential election can influence the stock markets. Two formats exist representing the four-year term of office:
A) President four-year cycle as:
• Election Year – last year or year four of the existing Presidency
• Post-Election Year – first year of the new