Livin Large

Calpundit pointed to this story
last night, and I ignored it at first. The theme is that Senators are
doing way better in the stock market than us ordinary schlubs, but I
figured "So what? They're rich. I'm sure they can afford some wicked
financial planners."
This morning I went and read the article and was sticking hard to my
"not a big deal" line, until I read this:

The Ziobrowski study notes that the politicians' timing of
transactions is uncanny. Most stocks bought by senators had shown
little movement before the purchase. But after the stock was bought, it
outperformed the market by 28.6 per cent on average in the following
calender year.
Returns on sell transactions are equally intriguing. Stocks sold by
senators performed in line with the market the year following the sale.

What a coincidence! How did all those Senators get so damn lucky?

Posted by flow Frazao on February 26, 2004 at 07:43 AM | Permalink