The Effect Of Elections On Stock Market Returns by Markos Katsanos
Do elections influence the stock market? Is there a pattern that investors can take advantage of? This author’s statistical research suggests that there is one pattern that produced more than 60% average returns during the election periods in countries around the world.
There is no doubt that political events can influence stock market returns. Upcoming elections are especially important since they can affect the economic and monetary policy of the country.
While there is a plethora of studies and multiyear statistical research concerning the performance of the US stock market during the Presidential election cycle, such studies are few or nonexistent for other countries around the world ...