The Congressional Calendar and Stock Market Performance

Authors

  • Reinhold P. Lamb The University of North Carolina at Charlotte, Charlotte, NC
  • K.C. Ma KCM Asset ManagementGroup,Wilmette, IL.
  • R. Daniel Pace The University of West Florida
  • William F. Kennedy The UniversityofNorthCarolinaat Charlotte,Charlotte,NC

DOI:

https://doi.org/10.1016/S1057-0810(97)90029-9

Abstract

This study reports on the existence of a curious calendar effect--a relationship between stock market performance and the schedule of the U.S. Congress. Almost the entire advance in the market since 1897 corresponds to the periods when Congress is in recess. This is an impressive result, given that Congress is in recess about half as long as in sesskm. Furthermore, average daily returns when Congress is not meeting are almost thirteen times greater than when Congress is in session. Throughout the year, cumulative returns during recess are eight times that experienced while Congress is in session.

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Published

1997-03-30

How to Cite

Lamb, R. P., Ma, K., Pace, R. D., & Kennedy, W. F. (1997). The Congressional Calendar and Stock Market Performance. Financial Services Review, 6(1), 19–25. https://doi.org/10.1016/S1057-0810(97)90029-9

Issue

Vol. 6 No. 1 (1997): Financial Services Review

Section

New Original Submission

License

Copyright (c) 1997 JAI Press Inc.

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