Congressional Effects Fund

One of the interesting exhibits at the RightOnline.com conference with Americas For Prosperity mutual fund whose investment strategy involves investing in S&P 500 instruments when Congress is out of session and using money market instruments when they are in session.

The idea for the fund is based on a 40 year study of the performance of the S&P index. The average percent return when Congress was in session was 1.6. When Congress was out of session the average return was 17.6 percent. This seems to confirm Rush Limbaugh's belief that we are better off with Congress on recess.

More details are here. You need to ask your broker for a prospectus if your interested.

Update: One of my readers points out that Texas only allows the legislature to meet for five months every other year. That could be another reason why this state is more prosperous.

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