What are the market effects of presidential elections?

CXO Advisory does a great job of summarizing market movements with presidential elections. Here's an executive summary:

In summary, there appear to be both long-term and short-term connections between the U.S. national election cycle and stock market performance, with presidential term year 3 (1) the best (worst) and a tendency for a brief election-time rally. However, the subsamples for presidential term year analysis are very small, so confidence in related tendencies is very low.

Get the whole scoop here:
http://www.cxoadvisory.com/blog/internal/blog1-04-08/