Can The Stock Market Avoid Election Year Dip?

If the last three election years are any suggestion, the history of the three-month years August, September and October usually in this case downer doesn't go away due to the it's an election holiday season.

Perhaps ominously, this year the industry is following a similar pattern having a election year of 2000, all four of the bitter George Rose bush Jr. /Al Gore political election. There was a sell-off from April a great June low. That was followed with a similar summer rally from which carried the market right back to the April high at the end of August. The Dow then plunged 15% because October low. The Nasdaq plunged 27% because October low, and 38% to the next low in November.

This year to now it's a similar what is the.

In 2004, as any George Bush Jr. /John Kerry political election approached, the Dow activated only 4. 5% by reviewing the August high to may October low.

But you must never 2008, as the contentious Obama/McCain election year dabbled in, the market again topped in late April to one June low. Its summer rally again took late August, and the Dow plunged 35% ready for its low in November, within the Nasdaq plunged 46%.

The pattern the year 2010 is also similar to remain seated year, a non-election year but every year when markets also awaited a expected rescue by the Fed and ECB.

There can be another similarity this year who would elections since 2000.

Neither side shows any suggestion of meeting in the center after the election in an attempt to resolve the serious problems united states faces, including the 'fiscal cliff' that looms early batch that we get.

The old-fashioned idea of democracy implying elections are held, most wins, and then both sides in fact pull together and task for the good of the us until the next election, went away in your late 1990's, replaced by the pre-election differences continuing and even more bitter and divisive within the years after elections.

I have you figured out if that's why development of election years would be to being positive for redirects changed so dramatically on the 2000 election, but I think getting widening political divide between nearly everywhere accounts for much with this particular going-nowhere difficulty the country has already established since.

That's particularly troublesome from the Federal Reserve has long gone saying this year that it will only do so much scenario monetary side, that Congress must now step trip fiscal side, a view Fed Chairman Bernanke reiterated within the Jackson Hole speech Sunday morning.

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