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The Congressional Calendar and Stock Market Performance

FINANCIAL SERVICES REVIEW, Vol. 6 No. 1, 1997

Posted: 30 Apr 1997  

Reinhold P. Lamb

The University of North Carolina at Charlotte

K. Ma

Asset Management Group

R. Daniel Pace

University of West Florida

William F. Kennedy

University of North Carolina at Charlotte

Abstract

This study reports on the existence of a curious calendar effect - a relationship between stock market performance and the schedule of the United States 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 session. Furthermore, average daily returns when Congress is not meeting are almost eight times greater than when Congress is in session. Throughout the year, cumulative returns during recess are thirteen times that experienced while Congress is in session.

JEL Classification: G12, G14

Suggested Citation

Lamb, Reinhold P. and Ma, K. and Pace, R. Daniel and Kennedy, William F., The Congressional Calendar and Stock Market Performance. FINANCIAL SERVICES REVIEW, Vol. 6 No. 1, 1997. Available at SSRN: https://ssrn.com/abstract=8314

Reinhold P. Lamb (Contact Author)

The University of North Carolina at Charlotte ( email )

9201 University City Boulevard
Charlotte, NC 28223-0001
United States
704-547-4125 (Phone)

K. Ma

Asset Management Group

Wilmette, IL
United States

R. Daniel Pace

University of West Florida ( email )

11000 University Parkway
Pensacola, FL 32514-5750
United States

William F. Kennedy

University of North Carolina at Charlotte ( email )

9201 University City Boulevard
Charlotte, NC 28223-0001
United States

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