Stock Market Congressional Recess Effect

As Congress is set to take their summer "recess" (interesting how only schoolkids and Congress use that term), Mark Hulbert reminds us how much investors despise Congress when it is in session. In summary, an academic study completed several years ago shows that 90% of capital gains occur when Congress is "on recess." He sums it up this way:

Maybe Will Roger got it right. The professors quote from a famous speech of his in 1930: "This country has come to feel the same when Congress is in session as we do when a baby gets hold of the hammer. It's just a question of how much damage he can do with it before we take it away from him."

I think Will Roger nailed the baby analogy - especially when dealing with Pelosi, Reid and Obama.