“That government is best that governs least.” It was true when Tom Paine first said it during the American Revolution in 1776, and it is still true today.

Congressional Effect  Management, advisor to the Fund, believes it is especially accurate with respect to how much Congress hurts investment performance. As government has gotten bigger at an accelerating rate, the Fund manager believes the biggest risk to investors in today's market is political risk--the risk  that the rules will change. In the 1990’s, Eric Singer set out to study this issue, and was surprised at the actual magnitude of Congressional wealth destruction revealed in stock market returns. 

Specifically, since 1965, 44 years of empirical data demonstrates that over long periods of time the stock market performs dramatically better on days when Congress is out of session as compared to days when Congress is in session.  Study the chart to the left to see the historical difference in stock market returns on Congressional In Session vs. Congressional Vacation days.

The Congressional Effect Fund was launched in May 2008 as the first mutual fund to specifically seek to reward investors by avoiding, and help the country by exposing, the stock market harm caused by unintended consequences of Congressional action and deliberation.  Read more...