The Nation: Allen's Law

George E. Allen, lawyer, raconteur and poker-playing intimate of Presidents (F.D.R., Truman, Eisenhower), has made some money in the stock market over the years. Not, however, on any inside tips from his friends. His secret: Allen's Law of Politico-Market Cycles.

Stock prices, he contends, always rise in the third year of a President's administration. At the beginning of a term, everyone wishes the new Chief Executive well, but disillusion quickly sets in. The honeymoon ends, many pledges go unfulfilled. The market reacts by going down. The off-year election adds to the upset as the opposition flails at the White House and the...

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