The presidential elections in Latin American countries has become an important factor for the investors in the stock market. Elections for presidents in each country are important factor to take care of because of the influence that it may have in the stock market if there is a change in the government ruling the country in that moment or if the ideologies of the person running for president can make reforms that can affect the stock market. However, economic news are not the only effect on the movement of stock market. The political environmental and other procedures are frequently careful responsible for such movements. There is an tentative and theoretical literature debating on the effects of these other measures, especially Political Cycles on the macro economy, which is explicitly of attention in this research paper. The study used a monthly time series data from October 1996 to December 2017 of the Latin America presidential elections and the stock market returns. Using a Quantile Regression model for each of the countries: Brazil, Chile, Colombia, Peru. We found highly significant negative relation between the Returns and the Political cycle. Our study shows that two of the Latin American Countries Peru and Brazil has a positive relationship between the returns and the partisan cycle, on the other hand we also identify a negative relation for Chile and Colombia.

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