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 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)
“every subjective phenomenon is essentially connected with a single point of view, and it seems inevitable that an objective, physical theory will abandon that point of view.”
—Thomas Nagel (b. 1938)
“Everything to which we concede existence is a posit from the standpoint of a description of the theory-building process, and simultaneously real from the standpoint of the theory that is being built. Nor let us look down on the standpoint of the theory as make-believe; for we can never do better than occupy the standpoint of some theory or other, the best we can muster at the time.”
—Willard Van Orman Quine (b. 1908)