What Historical Trends Say
Jeffrey A. Hirsch and J. Taylor Brown observe in the “Stock Trader’s Almanac 2010” that 2010 has two factors on the proverbial wall of worry: midterm elections will be held in November and the fact that it is a “zero” year.
Midterm election years tend to be the third worst in the four-year election cycle. Often, crises and dissatisfaction with the incumbent party have coincided with market drops.
Years ending in a zero have also not been kind to investors. The Dow has declined during eight out of the last 12 years that ended with a zero. The blue-chip average did, however, post gains in 1950, 1970 and 1980.
...To continue reading this article you must be registered with AAII.
Already registered with AAII? Login to read the rest of this article.
to read this article and receive access to future AAII.com articles.