Unpublished Paper
Tactical Asset Allocation and Presidential Elections
Financial Services Forum Publications
Document Type
Occasional Paper
Publication Date
6-1-2005
Disciplines
Abstract
We analyze tactical asset allocation decisions around presidential elections using traditional methodology and then in the context of an efficient frontier analysis rather than the traditional stock-only or bond-only allocations in prior literature. To our knowledge, this is the first paper in the literature that addresses asset returns around presidential elections in a mean-variance efficient frontier framework. We find that the efficient frontier is sensitive to presidential time periods, with Democrats providing the best risk-reward opportunities over the long term, while Republicans provide better opportunities over the past quarter century.
Community Engaged/Serving
No, this is not community-engaged.
Citation Information
James L. Grant and Emery A. Trahan. "Tactical Asset Allocation and Presidential Elections" (2005) Available at: http://works.bepress.com/james_grant/8/
College of Management at University of Massachusetts Boston, Financial Services Forum, Working Paper 1004.
Prepared for presentation at the AFFI French Finance Association Conference, Paris, France, June 2005.