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The Market Prefers Republicans: Myth or Reality

Published online by Cambridge University Press:  06 April 2009

William B. Riley Jr  and
William A. Luksetich
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Extract

Wall Street abounds with folklore concerning aggregate stock price movements before and after Presidential elections. Some suggest that movements in the Dow Jones Industrial Average (DJIA) portend the outcome of elections. Others attribute movements in the market, prior to and after the election, to the anticipated outcome of the election. In this paper we examine some of the folklore with respect to the effect of Presidential elections on aggregate stock price movements and the implication of these movements on market efficiency.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 15 , Issue 3 , September 1980 , pp. 541 - 560
Copyright
Copyright © School of Business Administration, University of Washington 1980

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References

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