From Nasdaq:

The presidential election is heating up with Republican candidates competing in the GOP primaries. Former President Trump is leading in the early 2024 polls, setting up a potential rematch with President Biden. The stock market history shows that year 4 of a President’s term tends to witness the second-best performance.

President Biden’s term follows a pattern known as the Presidential Cycle, with year 3 being the strongest. The years following the election tend to witness higher stock performance. The President’s monetary policies and attempts to stimulate the economy reflect positively on stock performance during election years. This could indicate a bullish year ahead in the market.

The Presidential Cycle shows historical evidence of stock performance increasing in the latter half of a President’s term. The fourth year of the cycle generally witnesses higher stock market returns. The pattern has historically shown the pre-election year and election year to be the best of the cycle. Markets have climbed higher in year 4 of a President’s term, with an average return north of 12% in election years. The bullish case is even stronger for election years following negative midterm years.

In line with the Presidential Cycle pattern, this year, the stock market continues to climb higher as the economy shows signs of growth. Positive themes such as lower inflation and treasury yields support a bullish outlook. The cycle indicates that stocks tend to perform well in the year of a President’s reelection, with the future looking bright in this new bull market.

Zacks Investment Research has identified 5 stocks set to double in value, with recommendations for potential home runs. The report provides insights into stocks that could gain over 100% in 2023, and offers an opportunity to get in on the ground floor with stocks flying under Wall Street radar. For more insights and recommendations, click the link for the full report.



Read more: Presidential Cycle Takes Center Stage as 2024 Election Ramps Up