Congressional Effect Fund manager Eric Singer, writing in Registered Rep:
Even though the historical record for real returns with gridlock is great, I am worried that history will not repeat itself in the near term because there is a difference between benign gridlock, when economic times are "normal," and malignant gridlock, when they are not. ...While Reagan had a split Congress and a fabulous run, Hoover had a split Congress during his last two years, and the market lost 63.4 percent. In times of crises, a Congress that cannot undo its mistakes is not good. Could you imagine using your computer without an undo button?