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Sophomore Year Of A Presidential Term Is Usually Weak

Source: Barron’s

The second year of a presidential term [2006] is often charcterized by weak economic conditions, including recession. [Barron’s] [1]

“In the second year of a term, Washington launches stimulus efforts to make sure the economy and the stock market are in good shape by the time the next election rolls around. This has been true even for second-term presidents like George Bush. After all, they want their party to remain in power.”

Weaker economic conditions next year could help ease the rate of appreciation in the housing market because of the restraint of job creation that usually comes with a recession, but could keep mortgage rates low.