Monday, November 5, 2012

Money Saver Monday: Presidential Elections and Stocks

I am not a big stock market investor or follower.  I do, however, have stock grants from work invested and have a few of my non-401K retirement savings in stocks.  A while back my boss pointed me to an article from Pepperdine University about the cyclical nature of investing.

Here's a clip:
"For the past several decades, individuals in all walks of life have observed the cyclical nature of the stock market. Pundits have attempted to correlate these cycles with everything from referencing the position of the moon and stars to using highly sophisticated econometric models. This article, however, attempts to address the timely relationship between politics and stock market behavior."

This year I decided to test the theory and I sold about 15% of my stocks to sit in a cash savings account.  I plan to buy in January pending the state of the economy... hopefully the theory won't have an "off" year like in 2008.

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