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of fuel to businesses and individuals alike may spur concern for a campaign platform position regarding energy conservation, improved efficiency standards, implementation of renewable energy etc.
Consequently, should the leading candidates have specific platform positions, this has the potential to, but not a guarantee to influence the movement of certain commodities, and/or ownership of securities within particular industries. These patterns are hypothetical as single isolated factors generally aren't the only factors that influence capital markets. In other words, the capital markets are quite large and influenced by more than just political agendas, however political agendas may be a contributing variable.
To recap, U.S. capital markets have been observed to outperform, if not yield positive returns during election years. This pattern has been quantitatively measured through graphical and historical metrics. The accuracy of these measurements can be tested for accuracy, in part, using statistical analysis. The statistical analysis measures accuracy of relationship and also tests hypotheses relating to the election year and capital market performance.
Since statistical analysis is not an absolute science, it is subject to error and this is vulnerable to speculative oversight. For this reason, the connection between election years and capital market performance, in addition to the variables that appear to influence this connection such as market psychology and government behavior tend to be somewhat speculative despite the evident historical patterns that are present in capital markets during election years.
Sources:
http://www.usato day.com/money/markets/us/2004- 01-26-martelection_x.htm
http:/ /www.entrepreneur.com/magazine /entrepreneur/2007/october/184 386.html
http://www.investmentu .com/IUEL/2003/20031218.html
ht tp://www.usnews.com/usnews/biz tech/articles/040119/19elect_2 .htm
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by A.W. Berry
It is a long held notion among investors and market speculators that election years tend to be good years for capital markets.
Whenever there are US presidential elections, there are bound to be consequences in the capital markets. These may not be
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