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Technology Stocks : Intel Corporation (INTC)
INTC 39.50-3.1%Dec 11 3:59 PM EST

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To: robert b furman who wrote (185446)12/17/2007 11:50:46 AM
From: greatplains_guy   of 186894
 
The interesting effect of election cycles is the economic impact. Historically stocks price in information as soon as it it is available. (The Efficient Market Theory) In the later stages of Presidential election cycles as Democrats look like they are potential winners stock prices fall. When Republicans surge in the polls stock prices climb. By November all of the information is priced in and we see stock prices from November to the January inauguration make minimal adjustments.

Because of the efficient market, stock prices from the inauguration to the end of their term tend to rise more for Democrat Presidents because more uncertainty was priced into the market when they took office.
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