Stock Market Reaction to Presidential Elections The theory behind the Presidential Cycle is that stocks tend to do well in years 3 & 4 of a president’s term, but poorly in years 1 & 2. Why? That’s one of thing you’ll learn in this video. But more importantly, you’ll learn whether or not the whole thing is true — or just a bunch of “nonsense.” in Public bookmarkswith federal_reserve_and_stock_marketpresident_stock_marketstock_market_and_presidential_elections Note: The theory behind the Presidential Cycle is that stocks tend to do well in years 3 & 4 of a president’s term, but poorly in years 1 & 2. Why? That’s one of thing you’ll learn in this video. But more importantly, you’ll learn whether or not the whole thing is true — or just a bunch of “nonsense.”