As Congress approaches their August recess some historically good news is surfacing for the stock market. According to a study conducted by the University of Missouri at Columbia, 90% of the Dow Jones Industrial Average capital gains have come while Congress was not in session. That means this coming August when Congress takes its recess, if history is any indication, stocks may be poised for some gains.
Of course, it's important to note that even though this study has gone back and tracked the complete history of the DJIA, there are times when this has not held true. You should also never base your trading and investment decisions on studies like these alone, but it is interesting to think about. What do you think? Will history prove yet again that stocks will rise as Congress takes a break, or is it all just a coincidence?