Prime Minister Lee Hsien Loong announced last Friday that the Electoral Boundaries Review Committee (EBRC) has submitted its report to the Government on proposed electoral changes. The government has since accepted the report. It is the surest sign that General Elections are around the corner.

Over the weekend, a friend remarked that this is the best time to buy stocks. The government will do everything they can to win the elections, he insisted. And they will definitely ensure that the stock market rallies just before the elections so that they can capture the votes of retail investors.

Impeccable logic but is that really the case?

It was a casual remark but I was curious and decided to look at some data to verify if it is indeed the case. Specifically, here are some hypotheses that I would like to test out.

1. If my friend is right, from the time the …