Noticed an interesting fact today. 12 months before the elections, the stock market starts to pickup as the government eases regulations and creates a favorable atmosphere for businesses.
So its a safe bet to invest in the stock market approximately a year and half before the general elections start in the country and then sell them at the right moment. Its the same story in all developing countries.
Although not very attractive for small investors, this principle can also be used for Forex to some extent. If you keep an eye on currency value during election time, you will notice it will definitely go up steadily. When the local currency is at optimum level, buy more dollars for lower rupee price and then wait for a year or so and sell it after elections.
Perhaps this is one secret no body wants to tell publicly.
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