Sure, the markets are up so far month to date.  Today, they are down and many are wondering what will happen when President-elect Obama takes office.  Don't get your hopes up too high. 

Historically, January is typically one of the strongest months of the year.  However, Januaries following a presidential election are not as strong and are worse after the oval office changes parties.  Since the formation of the Dow in 1896, there have been 28 elections and the oval office has changed parties 12 times, including the this January's upcoming change.  Here's a comparison of January performance since then, both with and without elections in the preceding November.

Dow (since 1896)

• All Januaries: Up 65.2% of the time, avg gain of 1.20%
• Januaries following a presidential election: Up 60.7% of the time, avg gain of 0.97%
• Januaries following a presidential election with a change of parties: Up 54.5% of the time, avg gain of 0.46%

Last January the Dow finished down 4.63% and the January following the last presidential election (George Bush's reelection) the Dow was down 2.72%.  The good news is that in January, the Dow has been up more often than not.  Continue onto the next page for the details.

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