DJIA Index is incongruent with presidential
election cycle historical standards with a renewed bullish expression that
carried through most of this presidential election cycle. Notice the
market found bottom about six months before the recession concluded.
As you can see, the market did not dispute
dropping the gold standard as it recognizes economic wealth is delivered
through hard work and taking product and services to market. Real economic
wealth is delivered only through manufacturing, extraction, and
agriculture.
Prohibition
was repealed which is the beginning of the masses saying, "don't tell me
what is bad for me." As you can see a 1916 investor was at break-even ten
plus years later in 1926. And the poor 1900 Buy and Hold investor is still
enduring losses over thirty years after their original investment. The
thirty-year old 1900 buy and hold investor is now sixty-six years old and
still at a loss.
As you can see, bullish seasonality (pink) is
incongruent to historical standards during the bearish market periods and
bearish seasonality (white) is also incongruent to historical standards
during bullish periods.