History says it is. While it's fun studying historical phenomenon such as The Presidential Cycle, one would be better served by staying with fundamentals. Stock prices rise when inflation and interest rates go down and earnings go up. This is exactly what happened in 1995, but the trends are likely to weaken. Inflation will not go down much further, and interest rates certainly will not rise during an election year.
Earnings growth is is still on the rise, but the rate of earnings growth is slowing.
This scenario says that the stock market will be OK in 1996, but we may have seen the best of The Presidential Cycle. VectorVest ProGraphics is comprised of reports embodying a unique system of stock analysis. All contents and recommendations are based on data and sources believed to be reliable, but accuracy and completeness cannot be guaranteed. Users should be aware of the risks involved in stock investments. It should not be assumed that future results will be profitable or will equal past performance, real, indicated or implied.