Divided, we rise (or at least the markets do)

History suggests that investors could benefit from paying attention to the presidential election cycle. In modern times, the fourth year of a president's term has tended to be a positive one for stocks, as the incumbent does all the he can to remain in office.
APR 20, 2012
History suggests that investors could benefit from paying attention to the presidential election cycle. In modern times, the fourth year of a president's term has tended to be a positive one for stocks, as the incumbent does all the he can to remain in office, according to this white paper from Federated Investors. But what happens if the president comes from one party, and Congress is headed by another? What if the race is close? What if it's a landslide? And does it matter if the winner is a Republican or a Democrat? All of these outcomes can have potential implications for the economy—and the markets.

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