Since 1992, banks have posted an average return, relative to the broader market, of 6.59 percent from Labor Day through the election. Transportation and restaurants followed, returning 5.85 percent and 5.22 percent, respectively.
Kensho also found that individual stocks such as Zions Bancorporationand Bank of New York Mellon have posted returns of 20.59 percent and 11.87 percent, respectively.
"When the summer ends, volume picks up, and for big banks, that means higher trading revenues," said Phil Davis, CEO of PSW Investments.
The U.S. composite stock volume in August was the lowest for the year, according to FactSet.
Davis also noted that mergers and acquisitions tend to increase ahead of presidential elections. Tuesday saw a slew of merger and acquisition announcements, with Spectra Energy being bought out by Canadian pipeline firm Enbridge for $28 billion, and molecular diagnostics firm Cepheid announcing that it's being purchased by Danaher for $53 per share.
Adam Sarhan, CEO of Sarhan Capital, said there's another reason banks lead between Labor Day and presidential elections. "Investors don't like uncertainty, and as we get closer to the elections, we get less of that," he said, noting polls start paining a clearer and clearer picture of who will win.
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