Congressional lawmakers 47% pts better at picking stocks
8 days ago
- #Congressional stock trades
- #Political influence
- #Corporate access
- Lawmakers who ascend to leadership positions outperform their peers by 47 percentage points annually after becoming leaders.
- Superior performance is attributed to two mechanisms: political influence and corporate access.
- Political influence is seen in higher returns when their party controls the chamber, strategic stock sales before regulatory actions, and purchases of stocks from firms receiving government contracts or party support.
- Corporate access is reflected in trades predicting corporate news and higher returns on donor-owned or home-state firms.