Throughout US history, the most dangerous time for stock markets has been when one party controls the White House and Congress, says Keith Fitz-Gerald. And when you account for inflation, it doesn’t really matter whether the Democrats or Republicans are in the driving seat.

This from Money Morning:

With the whipsaw trading we’ve seen of late, it appears that the U.S. financial markets are already chewing through the post-election honeymoon. I have to say that I, for one, am relieved that’s the case because it signals that the markets are already returning to normal.

I realize it may not feel that way, but there’s one very important thing to remember: We nearly always seem to receive the best news near, or at, market tops, and the worst news near, or at, market bottoms. Although that seems contradictory, it actually makes sense. And investors can take some solace in the fact that

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Throughout US history, the most dangerous time for stock markets has been when one party controls the White House and Congress, says Keith Fitz-Gerald. And when you account for inflation, it doesn’t really matter whether the Democrats or Republicans are in the driving seat.

This from Money Morning:

With the whipsaw trading we’ve seen of late, it appears that the U.S. financial markets are already chewing through the post-election honeymoon. I have to say that I, for one, am relieved that’s the case because it signals that the markets are already returning to normal.

I realize it may not feel that way, but there’s one very important thing to remember: We nearly always seem to receive the best news near, or at, market tops, and the worst news near, or at, market bottoms. Although that seems contradictory, it actually makes sense. And investors can take some solace in the fact that

...

With the whipsaw trading we’ve seen of late, it appears that the U.S. financial markets are already chewing through the post-election honeymoon. I have to say that I, for one, am relieved that’s the case because it signals that the markets are already returning to normal. I realize it may not feel that way, but there’s one very important thing to remember: We nearly always seem to receive the best news near, or at, market tops, and the worst news near, or at, market bottoms. Although that seems contradictory, it actually makes sense. And investors can take some solace in the fact that the mounting tide of bad news is an important part of the bottoming process. Speaking of which, studies show that the most dangerous time for American markets (and U.S.-centric investors) is when one political party controls all the marbles. ...

A Fidelity study that took stock market performance trends since 1948 found some remarkable trends. Presidential election calendar years have historically experienced solid stock returns. Since 1948, election years presided over by a Democratic administration saw an average market return of 15.4%. When Republicans were in power, the average return was 11.4%. Performance in years of Republican and Democratic presidential electoral victories rated Republicans at 12.5% and Democrats at 14.0%. This presidential cycle is unique because of the sweeping victories for the Democrats in both the House and Senate. According to Ned Davis Research, between 1901 and 2006, the market has fared best when Democrats control Congress.

Now, although Obama had joked about being from Krypton at the 63rd Annual Alfred E. Smith Foundation Dinner in New York last month, he certainly is no Superman. Taking a closer look at the presidential cycle and stock market returns, we see a pattern

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The bears are back out for Halloween. US futures are down sharply this morning, as edgy investors anticipate more weak economic data. October 2008 has been the worst month for stock markets in decades. But Lynn Carpenter says the reasons for the next bull market are already in place….

More from Investor’s Daily Edge:

Years ago, my friend Bob Meier told me that bears start every bull market. Sounded strange. But it’s true.

Bulls push rallies farther and higher on big hopes, but they’re not the ones to start them. But bulls are like adolescents. They don’t handle adversity well. And just about the time the bulls are upset because they aren’t going to make 40% a year, the bears are smelling honey in those trees. They are seeing stocks that should go up 15% to 20% and priced at half to two-thirds of their fair value.

But how

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