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Market Cycles:
Election Years
Eric Lane
Associate Manager, Finance Sector
Disclaimer
My…… political philosophy
…… political history
Why none of this matters
A Brief History of Time
How HAVE the markets performed during Presidential election
years?
S&P 500: 1/1999 – 12/2007
The 4-year Cycle: 1950-2004
Now onto the present……
2008 – A Different Kind of Election
The Iowa Electronic Market
Democrat or Republican
The Iowa Electronic Market
Democrat Nomination
Democrat President in 2008?
Traditional Winners

Metals




Traditional Losers

Oil and Gas

Pharmaceuticals

Insurance Providers

Defense
Trade Regulations
Alternate Energy and
Environmental Cleanup
Freddie Mac/Fannie Mae
Homebuilders
Big Pharma
PHLX Drug Index
Big Oil
PHLX Oil Services Index
Barack Obama (D)
Senator from Illinois
Policy Platform



Cracking down on mortgage fraud
Helping homeowners avoid foreclosure
Middle Class Tax Relief





"Making Work Pay" credit
American Opportunity Tax credit
Retirement Security
Health Care Reform
Alternative Energy
Hillary Clinton (D)
Senator from New York
Policy Platform





Ending the foreclosure crisis
Stimulus Package
High-wage job growth
Health Care Reform
Leveling the Economic Playing Field




Strategic Energy Fund
Special Interest reform
Health Care
Trade
John McCain (R)
Senator from Arizona
Policy Platform

Pro-Growth Tax Policy








Keep tax rate low
Make permanent Bush income and investment tax cuts
Cut the corporate tax rate
Ban Internet and cell phone taxes
Social Security and Medicare
Trade
Health Care
Market-based energy reform
The Best Option?
Gridlock.
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