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Thursday, May 26, 2011

Members of Congress Get Abnormally High Returns From Their Stocks http://www.huffingtonpost.com/2011/05/24/members-of-congress-get-a_n_866387.html

Members of the House of Representatives considerably outperform the stock market in their personal investments, according to a new academic study.Four university researchers examined 16,000 common stock transactions made by approximately 300 House representatives from 1985 to 2001, and found what they call “significant positive abnormal returns,” with portfolios based on congressional trades beating the market by about 6 percent annually.

What’s their secret? The report speculates, but does not conclude, it could have something to do with the ability members of Congress have to trade on non-public information or to vote their own pocketbooks — or both.A study of senators by the same team of researchers five years ago found members of the higher chamber even better at beating the market — outperforming it by about 10 percent, an amount the academics said was “both economically large and statistically significant.

[CARLOS IF YOU'RE READING THIS,LOL I EXPOSED THIS YEARS AGO...IF I HAVE TIME LATER,ILL SHOW MYREADERS AFTER I GO THRU ARCHIVES,THE CORRELATION BETWEEN WAR,AND SENATE,CONGRESS'S STOCKS IN WEAPONS INDUSTRY..

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