Where should the stock market be? Is it too high or just right? It depends on your point of view.
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 …