DJIA Index is congruent with presidential
election cycle historical standards. The post election year of 1949 was
uncharacteristically bullish. The mid-term election year
characteristically found a market bottom. The pre-election year and
post-election year were congruent to historical standards by their bullish
expressions.
A secular bull market was initiated in June
1949, lasting for several years. Political rhetoric was changed from
socialistic causes to what people fought and died for - individual freedom
around the world.
As you can see, the market showed no respect
for the Korean War. Although it anticipated the recession of 1949 by about
six months, the
market did not fall with much depth.
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.
