Let’s plug in some numbers and dates and see what patterns develop.
November 1992: Clinton elected President - Dow = 3240
November 1994: Republicans retake control of the House and Senate - Dow = 3807
June 2001: Jumpin’ Jim Jeffords gives control of the Senate to the Democrats - Dow = 10,990
November 2002: Republicans retake Senate - Dow = 8,537
November 2006: Democrats retake control of House & Senate - Dow = 12,342
November 2010: Democrats lose control of House - Dow = 11,092
Today, a year and a half since the Democrats lost control of the House - Dow = 12,415
Let’s review. During the first two years of Clinton, while the Democrats retained control of the House and Senate, the Dow increased but was relatively flat.
In 1994, the Republicans took control of the House and Senate. The Dow exploded, increasing at an annual rate of almost 18% per year for the next 6 & 1/2 years, the entire period while the Republicans remained in control.
In June 2001, the Democrats gained control of the Senate. The Dow then plunged at an annual rate of almost -16% until November 2002, when the Republicans regained control of the Senate.
From November 2002, while the Republicans controlled both the House and Senate, until November 2006, when the Democrats regained control of both the House and the Senate, the Dow increased at a rate of over 20% per year.
In November 2006, the Democrats regained control of both the House and Senate. During the first two years of Democrat control (from November 2006 to November 2008), the Dow plunged at an annual rate of almost -15% per year. After four years of Democrat control of both houses of Congress, the Dow was down 10% from where it was before the Democrats took control.
In the year and a half since the Democrats lost control of the House, the Dow has gained 12% and is finally back to where it was in 2006, when the Democrats took control of Congress.
Anyone else notice a pattern here?
Republican Control = Bull Market and Prosperity
Democrat Control = Bear Market and Depression
It is not hard to do the math.
As soon as the market starts to believe that Obama really will lose, it’s going to TAKE OFF.