Politics and finance come together every four years when America elects a new President. History has shown the correlation between these two worlds as the presidential cycles affect stock market returns.
The stock market, as defined by the Dow Jones Industrial Average (DJIA) has generally performed better when the incumbent party won each given election, regardless of the political party. If in the three months leading up to the election the stock market is up, it is likely that the incumbent party will win. Losses in those three months mean that the opposing party is likely to come into victory.