Economy & PolicyExtended setwaiting_dataNew

Election Political Cycle Rotation

Updated dailyData needs: mediumlong only
paper
2003
Source
Santa-Clara, P., Valkanov, R. (2003). "The Presidential Puzzle: Political Cycles and the Stock Market." Journal of Finance, 58(5), 1841-1872. Also Belo-Gala-Li 2013 JFE.
Read the paper →

In plain terms

Polymarket Dem-odds rise → defense + healthcare rally; GOP-odds rise → energy + financials rally.

How it works

Dem-victory prob delta predicts cross-sectional sector rotation (gov-spend-exposed names long under Dems, energy/financials/private-prisons long under GOP).

No live results for this strategy yet. Charts appear once it has earned a top spot on at least one stock, either on its own or as part of a blend of several strategies.
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Data dependencies

  • Daily prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

  • Election odds

    A data feed this strategy reads, refreshed on its normal schedule.

  • Congress trades

    A data feed this strategy reads, refreshed on its normal schedule.

Expected edge

Reported return
+2% to +6%
Reported Sharpe
~0.4
Tested over
T+0 to T+180d

+2% to +6% over 90-180d.

Example tickers where this is likely to fire

Illustrative only, the signal fires based on the live data, not a fixed list.

Related families

Explore Election Political Cycle Rotation on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

For informational and educational purposes only. Not financial advice. Learn more