Fisher Investments CEO and Forbes columnist
Fisher, a long-time student of the relationship between politics and stocks, explains that while returns are varied, fourth quarters of midterm-election years are overwhelmingly positive. "Since 1925 the S&P 500 has risen in 19 of 22 midterm-election-year fourth quarters. That's a whopping 86.4%. One of the other three wasn't negative--but 0.0%. Hence it's been negative only 9.1% of fourth quarters. One was merely -5%. Only once was it down much, -16.4% way back in 1930--during the crash."
In his Forbes investment column, Fisher explains why this happens--because midterms usually result in gridlock, and investors are slow to realize. Since 1932, only FDR and
This effect stretches beyond the fourth quarter. According to Fisher's Forbes investment column, "both of the next two quarters--the first and second of a President's third year (or seventh)--have been positive 86.4% of the time, although with slightly lower average positive returns: 9.1% (first quarter) and 7.2% (second)."
Fisher's Forbes investment column will be printed in the
Fisher, CEO and Co-Chief Investment Officer at Fisher Investments, has written his monthly Forbes Portfolio Strategy column since 1984 and is the third-longest running columnist in the magazine's over 90-year history.
About Fisher Investments
Founded in 1979, Fisher Investments is an independent, privately owned money management firm with tens of billions under management. Fisher Investments maintains two principal business units,
Read the full story at http://www.prweb.com/releases/fisher-investments-forbes/q4-market-prediction/prweb11970629.htm
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