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Congressional Insider Trading Debate

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Congressional Insider Trading Real

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Congressional Insider Trading

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Is Congressional Insider Trading real? Here’s how to answer the question

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84% Informative

Is Congressional Insider Trading real? Or is this narrative built on a cherrypicked selection of a few good years for a few lucky traders? Several papers in economics and finance on this topic corroborate the claim that congresspeople consistently beat market returns.

Fresh congress members don’t beat the market.

Ziobrowski only gets a statistically significant estimate of Senator’s advantage over the market when they look at the aggregate trade-weighted portfolio of all senators, which puts a ton of weight on a few big trades from a few members.

The average congressional portfolio underperforms the market by 2-3% .

Congressional salaries haven’t risen in nominal terms since 2009 , which means they have shrunk massively in real terms.

As this shrinks more, it gets harder for people without independent wealth to afford the office.

Fixed salaries with no trading are an improvement on this, but we can do better.

Index fund salaries are commission payments on broad-based economic growth.

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informal

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English

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not hateful

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External references

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finance.yahoo.com en.wikipedia.org substackcdn.com ideas.repec.org papers.ssrn.com www.amazon.com www.cambridge.org www.researchgate.net mobile.x.com disclosures-clerk.house.gov www.mit.edu x.com www.sciencedirect.com freakonomics.com www.newyorker.com economicsfromthetopdown.com marginalrevolution.com

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