Creighton Prof Says 3rd Year of Presidential Election Cycle Is Best for Stocks Than First 2 Years

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Tomorrow is election day around the country. Professor Johnson has published a great deal on the Presidential Election Cycle. His findings show that much of the presidential election cycle – that years three and four, particularly year three, is much better for stocks than years one and two. His says the research shows that Fed policy contributes to the presidential election cycle.Johnson has co-authored several articles on the topic:· “The Presidential Term: Is the Third Year the Charm?” Journal of Portfolio Management, vol. 34, no. 2 (Winter 2008), pp. 135-142. (with Scott B. Beyer and Gerald R. Jensen). · “Gridlock’s Gone, Now What?” Financial Analysts Journal, Vol. 62, No. 5, Sept/Oct 2006, 21-28.· “Don’t Worry About the Election – Just Watch the Fed.”· “Presidential Politics, Stocks, Bonds, Bills and Inflation.” He also has an article forthcoming in Managerial Finance titled “What to Expect When You’re Electing.” It can be found at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2164523