Chapter VII: Price Analysis according to Political Factors reveals some surprising results. Computing trends against the November based political calendar may give better predictions than the traditional calculations based on the January calendar year! |
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| The indicators are mixed on the question of which Presidential Party is best for ALA investors. Two theories compete as to the influence of the President's political party on stock prices. One camp holds that the market reacts very to the choice of president, possibly even before election day when the outcome is forseen. Others believe the new president does not begin to materially influence the market until he has been in office for some time. |
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| Monthly Appreciation is calculated as the percentage change between the mean price of each month compared to the preceding month. Price Periods are assigned to Political Parties three different ways for this calculation. A split decision is in the result here, according to which method you favor. But two of the three favor the Democrats. |
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| You may have seen charts that profile seasonal trends. This is similar, but it is based on the political calendar. The short (Congressional) cycle is 24 months long. ALA is not a typical company in the 2 year election cycle. One rarely sees profiles like this. More typically, lows occur during the fall months of election year, with the highs in the offyear. |
Political Financials with the Influence of Congressional Elections on ALA. Also, roadmap and Summary of most effective indicators: |
| Monday, February 08, 2010: We have news on American International Group, Inc., ticker symbol AIG. Some signs of an over-sold condition have become evident. Also, there are breaking events concerning MicroSoft and Eastman Kodak. From the News Archive: (2/3/2010 ) Favorable events happened at C.H. Robinson Worldwide, Inc., Polo Ralph Lauren Corporation, and PNC Financial Services. Meanwhile, bad news came from Northrop Grumman Corporation. |