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Anecdata to follow. Does this not look suspicious? https://www.threads.net/@quiverquantitative/post/CzcB_jyA_pD https://www.threads.net/@quiverquantitative/pos
by despideme 3y ago
Anecdata to follow. Does this not look suspicious? https://www.threads.net/@quiverquantitative/post/CzcB_jyA_pD https://www.threads.net/@quiverquantitative/post/CzcB_jyA_pD
The politician in question is a 69 year old former football coach who bought stock in a cloud-based e-commerce software vendor before the company was acquired, then when the stock spiked 50%, he sold it right away.
- defrost 3y agoWell, if you factor in that he bought his position of > $600K US in multiple buys less than a month before the spike then yes, you might say it was a little suspicious. What a lucky man.
- kasey_junk 3y agoTurns out US insider trading laws have nothing to do with fairness (even if you aren’t a congressperson). They have to do with theft. Me trading against you from an information advantage is encouraged! This isn’t an insider trading issue, it’s an ethics issue.
- stouset 3y agoYes, it is likely individual politicians are making insider trades. It is also likely that some of those politicians are making bad trades based on overvalued or misvalued insider information. I have personally seen this in other contexts where people know something presumed private about a company, assume it’s a bigger deal than it is, and trade on that information. It’s also likely that there are a lot of politicians who are generally just as bad as the average person at stockpicking. All this combined, and it’s reasonable that the overall trend will be mostly in-line with the market, but likely overperforming sonewhat in the long run based on the volume and quality of insider trades. One year and change isn’t the long run.
- blitzar 3y agoKids on wallstbets were buying 100-1 leveraged short dated options paid for with their credit cards on the same stonk for the acquisition.