Investing Based on the Congressional Effect
It’s hard to know what all the economic consequences of the taxes, spending, and regulation we report on here at WashingtonWatch.com might be, but here’s an investment fund that might be interesting to folks who are skeptical of it all. The Congressional Effect Fund Web site says:
43 years of empirical data demonstrates that the stock market performs better on days when Congress is out of session as compared to days when Congress is in session. Thus, the Fund only invests in the equity market when Congress is out of session, while investing in interest-bearing securities all year round.
If you believe that congressional action in the aggregate has a strong enough negative influence on share prices, this may be an investment for you.