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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| PFE 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. |
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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. Here all three methods 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 PFE, but the lowest profitability for investors occurs at an unusual time. |
Political Financials with the Influence of Congressional Elections on PFE. Also, roadmap and Summary of most effective indicators: |
| Wednesday, March 10, 2010: We have news on American International Group, Inc., ticker symbol AIG. Signs of an over-bought condition have become noticable. Also, there are breaking events concerning XTO Energy Inc. and LoJack Corp. From the News Archive: (3/9/2010 ) A favorable event happened at Leggett & Platt, Inc.. Meanwhile, bad news came from Titanium Metals Corporation, Exxon Mobil, and Huntington Bancshares Incorporated. |