The Presidential Election Cycle System was first published by Marty Zwieg in 1986. Simply and somewhat amazingly, the S&P 500 had a winning year each year preceeding the presidential election since 1942.
Since 1942, if you were to have placed money in the S&P 500 at the beginning of January on the year preceeding the Presidential election, and sold at the end of that year, you would have made an average of 16.66% return on your money.
With all the mixed news in the media, it makes it difficult to feel confident in which direction the market is headed. I can admit that the fundamentals of the economy do not look too rosey, and would expect 2011 do be a difficult year. However, according to the Presidential Election Cycle System, investing in 2011 seems to be a wise decision.
