Trading the Election Cycle

By Matt Blackman, CMT

What if someone told you it was possible to capture the lion’s share of Dow gains by only being invested and at risk in the market for a little more than half the time?

Would it surprise you to learn that governments have developed an uncanny knack at kicking the economy into overdrive leading up to elections? If it wasn’t clear how self-focused our elected officials could be regarding their own political well-being before the debt ceiling debate, it should be crystal clear now. The debate was further confirmation that politicians will do whatever it takes, no matter what the cost, to get re-elected.

But luckily for them (if not for us), voters have short memories and the self-serving theatrics on Capital Hill will likely be forgotten by the time the next election rolls around. Such events are little more than expensive side-shows in the overall political landscape with roots dating back at least two centuries.... (more)

Link to full article:

http://www.traderslog.com/trading-the-election-cycle/