Personal Finance Advice and Commentary

Thursday, March 15, 2012 2:50 pm
By Sheyna Steiner · Bankrate.com

Here we are in the middle of the third month of an election year, and the stock market is going gangbusters: The Standard & Poor’s 500 index, for example, closed 2011 at 1257.60 and hit 1401.07 today, an 11.4 percent increase.

Is it a coincidence or the presidential election cycle at work? That’s a theory that posits that the stock market does better in the second half of a president’s term. In an interview two months ago, editor of the “Trader’s Almanac,” Jeffrey Hirsch, told me:

You hear that there have been no losses in the third year of a president’s term since 1939, and it’s because …