|Today's chart illustrates how the stock market has performed during the average pre-election year. Since 1900, the stock market has tended to outperform during the first six to seven months of the average pre-election year. For the remainder of the year, pre-election performance has tended to be choppy and slightly subpar. In the end, however, the stock market has tended to outperform during the entirety of the pre-election year. One theory to support this behavior is that the party in power will make difficult economic decisions in the early years of a presidential cycle and then do everything within its power to stimulate the economy during the latter years in order to increase the odds of re-election.Notes:
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Quote of the Day"If you are planning for one year, grow rice. If you're planning for 20 years, grow trees. If you're planning for centuries, grow men." - Chinese proverb
Events of the DayJanuary 01, 2011 - New Year's Day - Rose Bowl - Fiesta Bowl
January 03, 2011 - Orange Bowl - US Congress convenes
January 04, 2011 - Sugar Bowl
January 10, 2011 - BCS Championship Game
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