📈 SigmaTrader Blog

Throughout history, a fascinating pattern has emerged in U.S. presidential elections and market cycles: Republicans tend to get elected near the peak of a business cycle, and recessions often occur while they are in office. Is this merely coincidence, or is there a deeper psychological and economic phenomenon at play? Why Republicans Often Get Elected Near Market Peaks One possible explanation lies in human psychology and confidence cycles. When the economy is booming and stock markets are near all-time highs, people tend to feel optimistic, self-reliant, and confident in their ability to succeed. This mindset often aligns with Republican policies emphasizing free markets, tax cuts, and deregulation—making voters more likely to elect a Republican president during these times. On the other hand, when the economy is struggling or in recession, voters tend to seek security and government intervention, favoring Democratic policies that promise social safety nets and economic stimulus. Look...