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 CPB 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. The indicators are not in total agreement here for CPB investors. 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. The offyear is the preferred year for CPB, but the lowest profitability for investors occurs at an unusual time. |
Political Financials with the Influence of Congressional Elections on CPB. Also, roadmap and Summary of most effective indicators: |
| In the news, Friday, September 03, 2010: An unfavorable condition has developed with UST Inc., ticker symbol UST. Also, there are breaking events concerning Enersis S.A. (ENI) and Panera Bread Company (PNRA) |