3 ms·
Congressional (or executive branch.....) stock trading is completely unacceptable and should be totally banned. Full stop. With that being said- the idea that
by hash872 2y ago
Congressional (or executive branch.....) stock trading is completely unacceptable and should be totally banned. Full stop.
With that being said- the idea that they're outperforming the market I think has been debunked several times. I'm sure that they're acting in bad faith and believe that they have some kind of precious inside information. But a few different studies have shown that they basically do the same as any group of a few hundred people that pick individual stocks- some outperform, some underperform, and in general their returns are a random walk. See
https://studenttheses.uu.nl/bitstream/handle/20.500.12932/47365/Lis_7882866.pdf?sequence=1&isAllowed=y https://studenttheses.uu.nl/bitstream/handle/20.500.12932/47... "no significant abnormal returns"
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4954641 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4954641 "significantly underperform"
https://andy.egge.rs/papers/EggMueller_capitol_losses_jop_2013.pdf https://andy.egge.rs/papers/EggMueller_capitol_losses_jop_20... "between 2004 and 2008 the average member of Congress would have earned higher returns in a passive index fund"
Stick to index funds folks
- kasey_junk 2y agoMost congresspeople are just in index funds. And almost to a person the ones that aren’t are extremely wealthy people with portfolio goals different than indexing the market.
- kubb 2y agoJust the recent tarrifs announcement would have given you serious gains by rebalancing to bonds beforehand and buying the dip.
- pera 2y agoOr trading VIX derivatives