Insights from the political calendar

There are many quantitative approaches for slicing and dicing stock returns to search for profitable patterns. Here on the eve of the New Hampshire primary, the good folks at CXO Advisory Group are crunching election year returns for the Standard & Poor’s 500. As has been shown many times, the third year of a presidential term generally offers the best stocks returns (see 1983, 1991, 1995 and 1999, for example) but it didn’t work so well in 2007. The fourth year offers only average returns.

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