Friday, July 11, 2008

When the Cat’s Away the Mice Can Make Money

It’s not exactly news that Congress, and government in its entirety, is bad for business. Knowing that fact, why not profit from it?

According to financial writer Mark Skousen, investor Eric Singer has created a mutual fund that beats the market but is only invested 30% of the year. That’s right- during that time when the Congress-critters take a breather from torturing the electorate, i.e., their summer vacation.

He's [Singer] discovered an incredible anomaly in the marketplace: Stocks do better (a lot better) when Congress is out of session, and do poorly (very poorly) when Congress is in session.

It’s called the “Congressional Effect.”

He finds that the S&P 500 Index has gone up only 1.6% a year during the time when Congress is in session... and a whopping 17.6% annually when Congress is in recess.

During the time Congress is hard at “work” finding new ways to tax and regulate you to death the fund invests in interest bearing accounts and when the gangsters split town it invests in stock indexes

You can invest in the fund directly at

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