Friday, January 19, 2007

The "DC Effect"

The Club for Growth has an interesting article entitled "The 'DC Effect' on the Stock Market" in which the author, Andrew Roth, presents his calculations regarding the performance of the stock market during times when Congress is in and out of session. His conclusion is that the stock market does phenomenally better when Congress is out of session because the market gets nervous when Congress is in session because of the uncertainty surrounding what Congress might do that could impact the economy. Definitely worth reading.

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