Why Are Stocks Like Roulette Than Hard Science

10-01-2012 • http://www.investmentcontrarians.com/stock-market/

The end of the third quarter produced the fourth straight month of gains, as we head into the always fun and volatile fourth quarter, which will also determine the next U.S. president. If you believe in the historical cycles, presidential election years can be bullish for the equities market, especially if the current government remains, according to the Stock Trader’s Almanac. Beginning in 1901, in the years the government in power retains control of the White House (something that has occurred in 16 of the past 27 elections), the Dow Jones Industrial Average advanced an average 1.5% in the first five months of the year prior to the election. This was also the case this year, as the equities market made a strong advance in the first quarter. The question now is where does the equities market go from here? If you believe in the historical tendencies, the best six-month period for buying stocks is from November to April, according to the Stock Trader’s Almanac. So far since