U.S. stocks have lost about $2.2 trillion in value so far this year and the S&P is down 8%. Funny thing is, we’ve seen this phenomenon before, so we should’ve been prepared for it. Or at the very least, the “experts” should have warned us about this.
It happened with both Clinton and Bush 43. In 2000 with Clinton, it was blamed on the collapse of the tech bubble and in 2008 with Bush it was blamed on the collapse of the housing market. But were those events the cause or the effect? Was it really the Stock Market Curse that’s been attached to the 8th year of a presidency since 1920?
“The eighth year of a presidential term has seen the Dow fall about 15% on average since 1920.”
The 8th year of a U.S. President’s term has always been a bad year for stocks. Maybe next time we’ll remember this.