(ZT) Those investors heartened by the market's rally since its July low may also want to look forward to Congress' August recess later this week. That's because the market has historically performed best when Congress is not in session.
Mark Hulbert writes that one academic study on the so-called "Congressional Effect" attributes the relative weakness in the market's performance when Congress is in session to investor uncertainty over possible shifts in tax and regulatory policy. Hulbert says that the "Congressional Effect" is particularly strong during those periods in which Congressional approval ratings are especially low.