Geopolitical#189tier 2live in productionNew

election political cycle rotation

cadence: Dailydata: 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 →

What it checks

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

Mechanism

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

No production champion data for this family yet. Stats appear once the discovery pipeline promotes at least one strategy with this family tag.

Signal rule

30d Δ Dem-prob >= +5pp → long LMT/UNH/STRA; <= -5pp → long GEO/CXW/XLE/XLF; hold 30/90/180d

Data dependencies

  • daily_prices

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

  • election_odds

    Worker data table — see services/worker schema.

  • congress_trades

    Worker data table — see services/worker schema.

Expected edge

Paper alpha
+2% to +6%
Paper Sharpe
~0.4
Paper window
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