20 Hard and Fast Rules to Help You Beat the Stock Market
By Simon Thompson.
Presidential Cycle Strategy
This has a 100% track record.
In the past 5 decades, the stock market has not once failed to rise in pre-election years. This is mainly due to the monetary and fiscal stimulus the economy gets ahead if the elections, which investors react favorably to.
Buy Dow/S&P index on January 1st of the 3rd year of the presidential cycle and keep the position open until the end of the year. Ave return is 17.9%.
The chance of losing money in the 4th year is minimal. In the past 10 cycles (40 years), there have only been 2 down 4th years. Ave return of (5%).
Then the author suggests a better strategy: buy on October 1st of the 2nd year. Hold until December 31st of the election year (27 months). For the last 14 cycles, the return has averaged 40%.