When Congress Is Away, the Market Will Play

Anxious investors can take heart: Congress’s August recess begins at the end of this week, which has historically been a good thing for the markets. Michael Ferguson and Hugh Douglas Witte found that “about 90% of the capital gains over the life of the Dow Jones Industrial Average have come on days when Congress is out of session.” The finding could of course be a fluke but Ferguson and Witte found the relationship to be particularly strong when Congress’s approval ratings are lower. They point out that when Congress is in session, companies and investors face “a more uncertain tax and regulatory environment.” (HT: James Altucher) [%comments]