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:
“The theory of rights enables us to rise and overthrow obstacles, but not to found a strong and lasting accord between all the elements which compose the nation.”
—Giuseppe Mazzini (1805–1872)
“No theory is good unless it permits, not rest, but the greatest work. No theory is good except on condition that one use it to go on beyond.”
—André Gide (1869–1951)
“The things that will destroy America are prosperity-at-any- price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life.”
—Theodore Roosevelt (1858–1919)