With regulatory reform set to rock the trading universe, what's happening in Washington is never far from the minds of investors. Political uncertainty can equal skittish markets these days. However, this phenomenon is nothing new. According to this MarketWatch story, the stock market historically has performed much better when Congress is out of session than when it's in session (between 1897 and 2004, the Dow had annualized return of 5.3% when Congress was out of session vs. just 0.4% when it was in session). Congress is set to go on its summer recess at the end of this week, so, if history is any indication, the market could be in for a lift.
Historically, the political universe has an impact on the dollar as well. In our September issue, Abe Cofnas explains how to trade the dollar against the U.S. mid-term elections in November using dollar-based ETFs. And our Markets story will focus on what's next for the currency markets, with our experts citing the mid-term elections in the U.S. as one of the factors that could move the dollar.