If you look at the Dow's Performance going back to 1900 there is a remarkable pattern that has occurred since 1943.  Every year that has followed a Mid Term Election Year since 1943 has seen a positive yearly return in the Dow as shown in the table below.  The average return in the Dow during that time for the year following a Mid Term Election Year has been an amazing 15.7%.   However prior to 1943 you can see there was a mix of up and down years for the Dow following a Mid Term Election Year.  The question is why has the Dow been up every year since 1943 following a Mid Term Election Year.  Is this just a coincidence or is there a reason why this pattern has continued since World War II?   Meanwhile if this pattern continues then 2007 should end up being another positive year for the Dow.

Yearly Return of the Dow since 1900 following a Mid Term Election Year

 

Year	Return	Up/Down
1903	-23.6	D
1907	-37.7	D
1911	0.2	U
1915	81.7	U
1919	30.5	U
1923	-2.7	D
1927	27.7	U
1931	-52.7	D
1935	38.5	U
1939	-2.8	D
1943	13.8	U
1947	2.2	U
1951	14.4	U
1955	20.8	U
1959	16.4	U
1963	17	U
1967	15.2	U
1971	6.7	U
1975	38.3	U
1979	4.2	U
1983	20.3	U
1987	2.3	U
1991	20.3	U
1995	33.5	U
1999	25.2	U
2003	25.3	U
2007	6.2	U