Congressmen don’t beat the market
By Ezra Klein,
In his new book “Throw Them All Out,” Peter Schweizer alleges rampant insider trading by members of Congress. But if members of Congress are trading based on inside information, they’re doing a crummy job of it — at least lately. Via Nolan McCartney, here’s Andrew Eggers and Jans Hainmueller:
We examine stock portfolios held by members of Congress between 2004 and 2008. The average investor in Congress underperformed the market by 2-3% annually during this period, a finding that contrasts with earlier research showing uncanny timing in Congressional trades during the 1990s.