@article {Col{\'o}n-De-Armas68, author = {Carlos A. Col{\'o}n-De-Armas and Javier Rodr{\'\i}guez}, title = {U.S. Presidential Politics and the Asset AllocationDecisions of Individual Investors}, volume = {19}, number = {2}, pages = {68--72}, year = {2016}, doi = {10.3905/jwm.2016.19.2.068}, publisher = {Institutional Investor Journals Umbrella}, abstract = {During the six presidential administrations between 1989 and 2012, individual investors allocated more of their investment portfolios to stocks when a Democrat presided than when a Republican was in office. They also allocated more of their portfolios to stocks during the last two years of a president{\textquoteright}s term in office than during the first two years. These findings are consistent with previous studies suggesting that stock returns are higher during a Democratic President{\textquoteright}s term in office than during a Republican administration. In addition, they support the idea that investors acknowledge the existence of a four-year presidential election cycle and try to profit from it.TOPICS: Portfolio construction, security analysis and valuation, financial crises and financial market history}, issn = {1534-7524}, URL = {https://jwm.pm-research.com/content/19/2/68}, eprint = {https://jwm.pm-research.com/content/19/2/68.full.pdf}, journal = {The Journal of Wealth Management} }