Christian Science Monitor reports that a recent study has shown that senators are beating the stock market by an average of 12% - outdoing the typical investment firms by nearly 7%. Here’s a breakdown of the standard success rate of investors:
Senate – 12%
Investment Firms – 5%
Household Investors – -1.5%
From the monitor:
The study, done by researchers from four universities, paints a few senators as heavy traders - but not the institution as a whole. During the 1990s years in question, 62 senators disclosed some 6,000 stock trades. Nearly half of those were reported by just four lawmakers: Claiborne Pell (D) of Rhode Island, John Warner (R) of Virginia, John Danforth (R) of Missouri, and Barbara Boxer (D) of California. The vast majority of purchase transactions are less than $15,000.
Both the big traders and the small ones, in the statistical analysis, shared similar patterns of success.
Hmm… I don’t care who you are, that smells funny!