GOOOH Mock Session in Houston, TX

Sunday, August 1, 2010

The Economic Case For GOOOH

 I want to introduce a new perspective into the GOOOH argument for term limits and shortening the legislative session, specifically how the financial sector votes with their money. A while back I came across a mutual fund called the Congressional Effect Fund (CEFFX).  What makes this fund impressive is that the fund manager, Eric Singer, analyzed 45 years worth of S&P 500 data and corresponded it with days that Congress was in session and discovered that when Congress is out of session ,the stock market stagnant.  When Congress is in session the S&P 500 gains .94% on an annualized basis, when it’s out it gains 16.04%. That is a HUGE effect that Congressional meetings have on the financial sector!

Eric Singer capitalized on his research and applied it to his new fund and ‘surprisingly’ avoided the financial meltdown of 2008. Since the fund started in 2008, the S&P 500 is down -17.50% while CEFFX up +4.50% through July 22, 2010. That is a shocking impact that Congressional meetings have, isn’t it? Makes me want to buy some shares, but that’s not the point. Eric Singer’s research provides exoteric evidence that shows a movement like GOOOH has been needed for some time.

It is apparent what has happened, the financial sector has decided that the best government is the government which governs the least.  A recent Gallup poll shows that only 11% of Americans have a lot of confidence in Congress.  Notice that the long term trend on the graph is conclusively downward. What comforts me most about this graph is when I look at the time periods of 1982-1985 and 1993-2003.  These periods are unique for anti-incumbency, economic growth and sound policies pursued by both parties at the time. GOOOH’s goals are perhaps the best option to secure America’s economic future and freedom. I urge you to tell more people to get involved in the GOOOH movement because the evidence shows that GOOOH  is needed.

About the author:
Robert B, got involved with GOOOH after researching what political actions he could take to make America economically better and freer. Robert B, in his spare time runs Birchtree Sustainable Studios.

1 comment:

  1. I think this subject should be researched more in-depth.


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