Presidential elections affect the stock markets. Almost invariably, the first two years of a US President's term are marked by wars, recessions, and bear markets. The latter two years usually involve bull markets and prosperity. For this reason, it is very useful to consider this factor in your investments.
Pre-election years, such as 2011, tend to be the best. Since 1833, they have averaged a yearly gain of 10.3%, and have been up 33 of 44 years.
Election years, tend to be next best. Since 1833, they have averaged a yearly gain of 5.8%, and have been up 29 of 44 years.
The Mid Year is third in returns. Since 1833, these years have averaged a yearly return of 4%, and have been up 26 of 44 years.
The first year of a President's term has been the worst for the markets. Since 1833, they have only been up 20 of 44 years, for a 2% average gain.
