My plea to politicians. DO Nothing don't tweet, don't move.......

Friday, June 21, 2019 Francisco 0 Comments

TAGS:

UK will be without a proper prime minister until July 22 2019, does it matter?

I don't think so

Someone is ruling the world and it's not the politicians.

From BBC
Such a situation may seem extraordinary, but the absence of political leadership has not seen public services collapse and people are able to go about their normal, daily business.

The congressional calendar and stock market performance

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 session. 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.

March 13, 2006 Michael F. Ferguson and H. Douglass Witte published a piece entitled “Congress and the Stock Market” which concluded, “We find a strong link between Congressional activity and stock market returns that persists even after controlling for known daily return anomalies. Stock returns are lower and volatility higher when Congress is in session. This “Congressional Effect” can be quite large – more than 90% of the capital gains over the life of the DJIA have come on days when Congress is out of session.”^[5]

My take:

There is a bull market in regulation in the world and that is not helping anyone. I think this effect is exaggerated and difficult to measure because many times the stock market rallies before a tax cut and there is a sell on the news in the day the tax cut is approved. despite this i think the world would grow a lot if there as a period of no new laws. zero change zero uncertain.

One thing makes me think, the best people in the world don't want to be part of government perhaps in the USA there is an exception. In Europe politicians are 2nd or 3rd tier people. Elites do't care about politics. why? It doesn't matter.

2015 The Guardian

The 2015 election campaigns are under way, and it’s clear that doing or saying unintelligent things is no barrier to political success. Unfortunately, there are several psychological mechanisms that lead to apparent idiots being elected into powerful positions.