Stock market cycles Causes

Many have theorized as to the possible underlying causes of these statistical cycles. The four-year U.S. presidential cycle for example is attributed to politics and its impact on America's economic policies and market sentiment. Either or both of these factors could be the cause for the stock market's statistically improved performance during most of the third and fourth years of a president's four year term. . The month-end seasonality on the other hand is generally attributed to the automatic purchases associated with retirement accounts. There are other cycles however, for which the explanations are less clear.