Discussion in 'Economy' started by JBeukema, May 25, 2011.
Members of Congress Get Abnormally High Returns From Their Stocks
ThinkProgress » Millionaire GOP Congressman Tells Town Hall: ‘I Ain’t Wealthy…I Live Like The Rest Of You Folks’
but they're just like us......
Interesting... a 12% better outcome (on average) than all other investors on the market.
Meaning for example, if ALL market investors were getting on average returns of 10%, that set of Senatorial investors was getting an 11.2% return?
Now, let's think about that.
In every market, some investors are going to be getting returns lower than average, and some higher, right? I mean that is how statistical averaging works.
So the question is why would the subset of all investors, those Senators, on average find themselves on the happier side of the median?
We don't suppose that being on top of events both political and social might have something to do with that, do we?
I can see that happening to such an informed and obviously astute group of investors happening entirely without any INSIDER trading going on.
I can easily imagine how such a well heeled group, and such a group with higher than average intelligence and social awareness would, on average outproform the set of ALL other investors.
In fact I would be surprised if that was NOT the case.
I don't think this is the way to investigate for INSIDER TRADING, folks.
In fact, I know it isn't.
If one wants to make a case that any individual is gaming the market on Insider information, one needs to look at that SPECIFIC investor.
This implied charge appears to me to is rather silly.
It appears to be finding Sentors guilty by association.
And really, folks, you KNOWN that I have a THANG about the INSIDER CLASS, too, right?
So you know that my inherent prejudice would be to WANT to agree with the premise, too right?
But these STATS really do not, at least as far as I can intuit,suggest a pattern of insider trading at all.
In fact, what they seem to show is pretty much what I'd expect from such a small CLASS of players when compared to the set of ALL other INVESTORS.
That smarter players, people who are on top of social developments are LIKELY to outproform the set of ALL OTHER INVESTORS.
And a 12% better proformance is significant, but hardly indicative of fraudulant insider trading.
Remember, they didn't average a return of 12%, but a return that was merely 12% better than average.
That is entirely believable and NOT I think, leading me to the conclusion that Sentators AS A CLASS, are corrupted in they way the authors SEEM to be inplying
I do NOT think there's a "smoking gun" here, folks.
well, one needs consider all the facts Editec>
Wealthy Freshmen Increase Congressional Net Worth - OpenSecrets Blog | OpenSecrets
"The new blood in Congress is mostly blueblood
Corporate profits unexpectedly fell in the first three months of the year...
US economic slowdown confirmed by growth figures
26 May 2011 - US growth slowed in the first three months of 2011 to an annualised rate of 1.8%, which is a 0.4% quarterly rise, the Commerce Department has confirmed.
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