Understanding the Market Behavior in Election Year Springs

Market Forecast in Election Years

April could see the market rally begin to slow: while the month is traditionally strong for markets, its strength often stalls into May during election years.

Expert Insights on Market Behavior

Macro Risk Advisors Head of Technical Strategy John Kolovos joins Yahoo Finance to discuss the start of the second quarter of the fiscal year and how its relation to the current election cycle. "Presidential years, April tends to be a flattish sort of month, which leads into quite a negative May. But if you look at all Aprils, April's a pretty strong month, up around 2% on average over the last 30 years. I think the reasoning behind that is elections breed uncertainty, and that tends to be a moment in time. This window period leading into the summer doldrums and so forth and so on, folks tend to de-risk ahead of election uncertainties," Kolovos explains.

For more expert insight and the latest market action, watch the full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino