Singer Trade the Congressional Effect

How To Profit from Congress's Impact on the Stock Market
1. Auflage 2012
ISBN: 978-1-118-42046-1
Verlag: John Wiley & Sons
Format: PDF
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 224 Seiten, E-Book

Reihe: Wiley Trading Series

An innovative investment approach that takes the actions of theU.S. Congress into consideration
Historical research indicates that, more often than not, whenCongress is in session there is a negative effect on equitiesmarkets (the "Congressional Effect") due possibly to investoruncertainty surrounding government action or inaction as well asthe unintended consequences of Congressional legislativeinitiatives on the stock market. Author Eric Singer, a financialprofessional with over twenty-five years of experience, is anexpert on this phenomenon, and with this new book he shares hisextensive insights with you.
Trade the Congressional Effect skillfully details how youcan profit from Congress's impact on the stock market. Along theway, it puts this approach in perspective and gives you all thetools you'll need to profitably incorporate it into your investingendeavors. Singer walks you through the process of trading theCongressional Effect and provides practical guidance regarding thepossible pitfalls and opportunities you'll face each step of theway.
* Addresses why it is better to invest while Congressisn't in session
* Reveals exactly what the Congressional Effect encompasses andwhy it occurs
* Written by Eric Singer, one of the first people to publiclydocument the general effect of Congress on daily stock prices
Supported by over forty-five years of real world data, theCongressional Effect has proven profitable to those who know how touse it. This timely guide will show you exactly what it takes tomake this phenomenon work for you.

Autoren/Hrsg.

Singer, Eric T.

Inhaltsverzeichnis

Acknowledgments
Introduction
Our Damaged Economy
Congress' Role in Wealth Destruction
Summary
Notes
Chapter 1 What Is the Congressional Effect?
How Was the Congressional Effect Discovered?
Early Returns Showing the Congressional Effect
The Smoot-Hawley Act: The Mother of All Congressional Effects
The Congressional Effect Data and Launching a Mutual Fund
Summary
Notes
Chapter 2 The Congressional Effect and the Limits of Modern Portfolio Theory
How MPT Has Been Used by Financial Advisors
Formulas Distort Valuation If Inputs Are Not Free Market Inputs
What Caused the Crash of 1987?
The Magnitude of the Crash of 1987 Refutes MPT
MPT Assumes All Daily Pricing Is Random, but the Congressional Effect Shows It Is Not
Summary
Notes
Chapter 3 Congressmen as Issues Entrepreneurs
The Time-Money-Vote Continuum: Congress as a Business
Congressmen as Traders and Real Estate Entrepreneurs: Making Money Outside Their Day Gig
Summary
Notes
Chapter 4 Behavioral Finance, the Stock Market, and Congressional Dysfunction
Overview of Behavioral Finance Concepts
Survey of Behavioral Finance Concepts
Congress' Approach to Behavioral Finance
Summary
Notes
Chapter 5 If Congress is Malfunction Junction, What's its Function?
Economic Lifeblood: Investment Capital Formation, the Stock Market, and Congress
Dodd-Frank Overview
Healthcare Reform
Burning Coal and Other Energy Investors
Summary
Notes
Chapter 6 Where Washington Will Strike Next?
Where You Can Find Information
How to Leverage This Glut of Information
Summary
Note
Chapter 7 Sidestepping Congress' Wealth Destruction with a Macro Approach
11,832 Data Points Support the Congressional Effect Theory
Congress and the Tragedy of the Commons
Adam Smith Call Your Office!
Summary
Notes
Chapter 8 Are Democrats or Republicans Better for Your Portfolio?
Who Gets the Credit for the Bull Market in 1980?
Unified Government Favors Nominal Returns
Split Government Favors Real Returns
Republican Congress vs. Democratic Congress
Filibuster Proof Majorities Hurt Returns
Summary
Note
Chapter 9 Leveraging the Election Cycle
The Presidential Cycle and Real Returns
The 2012 Election, and Beyond
Note
Chapter 10 Are Lame Ducks, Impeachments, Resignations, Vetoes, and Litigated Elections Good for the Market?
President Bill Clinton
President Andrew Johnson
Resignations
Lame Duck Sessions
Litigated Elections
Vetoes
Summary
Note
Chapter 11 More Ways to Dodge Congress' Stray Bullets
Value Funds: Longer Time Horizons Than Congress or the Somali Pirates
Gold Funds: Avoiding Congressional Debasement
Beyond Congress: International Funds
Reducing Global Security Risk
Summary
Notes
Chapter 12 "That Government is Best That Governs Least"
Conflicting Government Mandates Promote Market Instability
The Cumulative Effect of Unintended Consequences
Congress' Dysfunctionality and the 2012 Election
But What Happens When We Don't Know the Price?
Congress Needs to Attract the Best Talent
In Conclusion
Notes
About the Author
Index

Über Autor(innen)

ERIC T. SINGER manages the Congressional Effect Fund,traded under the symbol CEFFX (CEFIX for institutional investors),a public mutual fund launched in 2008 through his registeredinvestment advisor, Congressional Effect Management, LLC(www.congressionaleffect.com). He was the first to document thegeneral effect of Congress on daily stock prices in an articlepublished in Barron's in 1992. His opinion pieces haveappeared in Investor's Business Daily as well asForbes, the American Spectator, American Thinker,Townhall, Seeking Alpha, and Newsmax, and he has beenfeatured on national TV and radio, including Fox Business News andBloomberg TV.