The Democrats and Republicans may duke it out, but bulls usually win in presidential election years. Since 1924, only six election years have resulted in losses for stock-market investors and those losses were “barely bruising,” according to Jeffrey Hirsch, an analyst and author of the Stock Trader’s Almanac (stocktradersalmanac.com).
How can you take those trends to the bank? For 2008, Hirsch is recommending companies that will make money on election themes. That includes media firms benefiting from campaign ad dollars, as well as nuclear-energy companies that may benefit from the anti-oil-dependency rhetoric.
Be patient. It’s usually the last seven months of the election year that turn in those great returns. The first five months may be rocky.