Von Aldo

The Gub'ment Screws Up the Market's Pricing Mechanism

That the gub'ment (say in your best Michigan militia accent) messes up the market's pricing mechanism is nothing new. From rent control in New York City to the capital markets, legislators and gub'ment bureaucrats have a tendency to create uncertainty or else burden the private economy with all kinds of bad craziness, as Hunter Thompson would say.

Sunday, the Wall Street Journal online, in a Heard On the Street column, asserted this: "Gauging the true worth of stocks, bonds and real estate is extremely difficult at a time when their prices are so heavily influenced by the actions, or perceived inaction, of governments and central banks."

In fact, this is so true that a friend of mine has created a fund that shorts the market when Congress is in session and then goes long when Congress is out of session. It's called the Congressional Effect Fund and is worth a look. The fund is up 7.73 percent year to date.

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