What is the 4 year market cycle theory?
Okay, so the four-year market cycle theory, right? It's this idea that the stock market kind of goes through this predictable up-and-down pattern tied to the US presidential elections. Like, supposedly, the year after the election is the worst one for the market. Isn't that weird? Makes you think, doesn't it?
I remember back in, I think it was 2017, I was just starting to get serious about investing. Everyone was talking about how the market was supposed to dip because it was the post-election year. And you know what? It kinda did have a shaky period, not a crash or anything, but definitely some volatility. So then you're sitting there, thinking, "Huh, maybe there is something to this four-year cycle thing…"
But then, other times it just…doesn't seem to play out that way at all! So, is it just a random coincidence? Or is there actually some complicated political/economic mojo going on behind the scenes? Who knows?! It’s one of those things that I've read about – I think I even saw a chart once, showing the supposed cycle – but I can’t remember where. It’s definitely out there, though. People are talking about it.
I mean, I'm not going to completely ignore it. It's definitely in the back of my mind, you know? Especially when I’m thinking long-term. But I’m also not basing all my investment decisions on it. That would be crazy, right? There are so many other factors that influence the market. It's just another piece of the puzzle, I guess. Still pretty interesting to think about though! Don’t you think?
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