TY - JOUR T1 - U.S. Presidential Politics and the Asset Allocation<br/>Decisions of Individual Investors JF - The Journal of Wealth Management SP - 68 LP - 72 DO - 10.3905/jwm.2016.19.2.068 VL - 19 IS - 2 AU - Carlos A. Colón-De-Armas AU - Javier Rodríguez Y1 - 2016/07/31 UR - https://pm-research.com/content/19/2/68.abstract N2 - 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’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’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 ER -