Theory
The four-year U.S. presidential cycle is attributed to politics and its impact on America's economic policies and market sentiment. Either or both of these factors could be the cause for the stock market's statistically improved performance during most of the third and fourth years of a president's four-year term.
The month-end seasonality cycle is attributed to the automatic purchases associated with retirement accounts.
The secular stock market cycles that last about 30 years move in lockstep with corresponding secular economic, social, and political cycles in the US.
Read more about this topic: Stock Market Cycles
Famous quotes containing the word theory:
“It is not enough for theory to describe and analyse, it must itself be an event in the universe it describes. In order to do this theory must partake of and become the acceleration of this logic. It must tear itself from all referents and take pride only in the future. Theory must operate on time at the cost of a deliberate distortion of present reality.”
—Jean Baudrillard (b. 1929)
“A theory if you hold it hard enough
And long enough gets rated as a creed....”
—Robert Frost (1874–1963)
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—Wallace Stevens (1879–1955)