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Tue, May 20, 2025

Here's when you'll want to own stocks if this well-known market cycle repeats


Published on 2025-05-20 08:01:08 - MarketWatch
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  • Stocks are essentially flat during the second year of a presidential term
  • and soar in the post-midterm election third year.

The article from MarketWatch discusses the potential repetition of a well-known market cycle known as the "Presidential Election Cycle," which suggests that stock market performance can be influenced by the timing of U.S. presidential elections. According to this cycle, stocks tend to perform best in the third and fourth years of a president's term, with the third year often being the strongest. The article references historical data showing that since 1950, the S&P 500 has averaged a 17.5% return in the third year of a presidential term, compared to lower returns in the first and second years. It also notes that while past performance does not guarantee future results, investors might consider this cycle when planning their investment strategies, especially as the current cycle suggests a potential uptick in stock performance in 2023, the third year of the current presidential term.

Read the Full MarketWatch Article at:
[ https://www.marketwatch.com/story/heres-when-youll-want-to-own-stocks-if-this-well-known-market-cycle-repeats-f3ea847a ]