KR - Effect of Election Cycles on The Kroger Co.
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!
Election Cycle Trends in KR Common Stock.
KR is a company whose stock does best under Democratic administrations, according to several measures. 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.
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. Here all three methods favor the Democrats. |
Best Times in the Election Cycle For Short Term Speculation in The Kroger Co. Common Stock.
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. KR 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. |
More Political Cycles of The Kroger Co.?
Companies in the News:
|In the news, Friday, February 18, 2011: An unfavorable condition has developed with Aetna Inc., ticker symbol AET. Also, there are breaking events concerning Dollar Tree, Inc. (DLTR) and First Niagara Financial Group Inc. (FNFG)|
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