I love seeing human ingenuity in action. Here’s the latest example I’ve come across: Congressional Effect Management is an investment company with a distinct guiding principle: When Congress is in session, the stock market goes down; when it’s not in session, the market goes up.
The company says it has empirical proof of that principle, which guides its mutual fund.
In theory it sounds like a great idea, but I would think that transaction costs (buy when Congress is in not in session; sell when it is) and capital gains taxes would be a killer on investment returns.
From The Michigan View.