Show Stock Market In Election Some investors place a great deal of emphasis on Die potential influence of national elections' In formic their investment especially when it comes to presidential election STUDIES made by the Research Staff of Babson's Reports indicate there is considerable valid reason for assuming that an upcoming presidential election will exert an influence on the behavior of the stock market for some months in During an election for stock market movements can and usually do reflect variations in investor sentiment as different forces come into EARLY in such a the ideas propounded by the presidential the results of primary and other factors can spark market advances or Later expectations as to the final candidates likely to be nominated at the and then the actual can have a definite effect on the stock the outcome of the election itself may exert a powerful impact provided it is not a runaway which has already been discounted by the It of perfectly logical for the stock market to reflect this significant quadrennial After the market is basically a barometer of investor sentiment affected by a broad spectrum of hopes and whether related to or international THE significance is obvious in the case of a presidential election since the victor can shape the policies of the nation for the ensuing four if the incumbent president is a candidate in the he can try prior to the election to create a favorable economic climate and place himself in an advantageous light by voting Such efforts tend to generate optimism on the part of even though an inimical Congress can frustrate his STARTING with the election of 1928 race which marked the twilight of the age when economic conditions could be automatically governed by the full gold the past eleven presidential election years saw one only in which the Dow Jones Industrial Average closed the year virtually unchanged from twelve months In three of the years the Dow Average suffered a net The remaining seven years were all on the plus there was a definite bias in favor of optimistically inclined Generally for the election years three phases of strength were A MODERATE rally extending from mid-winter through the early spring a more pronounced gain from mid-spring through and a post-election upward If the foregoing composite pattern runs true to the 1972 stock market should make good overall But the three years of down markets and the one with no progress are a reminder that an election year is not automatically profitable for WE COULD go back to presidential races but historic changes sini have altered the of voter abhorrence of e mild economic o have caused campaign of the two to become similar important THIS YEAR there an numerable other that could stock market beyond matter of which part I THERE IS acute put cern over as well I forms of will sain toD u |