{"id":683,"date":"2004-02-25T07:52:25","date_gmt":"2004-02-25T12:52:25","guid":{"rendered":"http:\/\/www.brianarner.com\/weblog\/wordpress\/2004\/02\/first_investors_among_equals\/"},"modified":"2004-02-25T07:52:25","modified_gmt":"2004-02-25T12:52:25","slug":"first_investors_among_equals","status":"publish","type":"post","link":"http:\/\/www.brianarner.com\/weblog\/2004\/02\/first_investors_among_equals\/","title":{"rendered":"First Investors Among Equals"},"content":{"rendered":"<p>Senators invest just like the rest of us, they just <a href=\"http:\/\/news.ft.com\/servlet\/ContentServer?pagename=FT.com\/StoryFT\/FullStory&#038;c=StoryFT&#038;cid=1075982783472&#038;p=1012571727162\">happen to do better<\/a>:<\/p>\n<blockquote><p>US senators&#8217; personal stock portfolios outperformed the market by an average of 12 per cent a year in the five years to 1998, according to a new study.<br \/>\n&#8220;The results clearly support the notion that members of the Senate trade with a substantial informational advantage over ordinary investors,&#8221; says the author of the report, Professor Alan Ziobrowski of the Robinson College of Business at Georgia State University.<br \/>\n. . .<br \/>\nUS senators&#8217; personal stock portfolios outperformed the market by an average of 12 per cent a year in the five years to 1998, according to a new study.<br \/>\n&#8220;The results clearly support the notion that members of the Senate trade with a substantial informational advantage over ordinary investors,&#8221; says the author of the report, Professor Alan Ziobrowski of the Robinson College of Business at Georgia State University.<br \/>\n. . .<br \/>\nThere was no difference in performance between Democrats and Republicans.<br \/>\nA separate study in 2000, covering 66,465 US households from 1991 to 1996 showed that the average household&#8217;s portfolio underperformed the market by 1.44 per cent a year, on average. Corporate insiders (defined as senior executives) usually outperform by about 5 per cent.<br \/>\nThe Ziobrowski study notes that the politicians&#8217; 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.<br \/>\nReturns on sell transactions are equally intriguing. Stocks sold by senators performed in line with the market the year following the sale.<\/p><\/blockquote>\n<p>Uncanny, eh?<\/p>\n","protected":false},"excerpt":{"rendered":"<a href=\"http:\/\/www.brianarner.com\/weblog\/2004\/02\/first_investors_among_equals\/\" rel=\"bookmark\" title=\"Permalink to First Investors Among Equals\"><p>Senators invest just like the rest of us, they just happen to do better: US senators&#8217; personal stock portfolios outperformed the market by an average of 12 per cent a year in the five years to 1998, according to a new study. &#8220;The results clearly support the notion that members of the Senate trade with [&hellip;]<\/p>\n<\/a>","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-683","post","type-post","status-publish","format-standard","category-uncategorized","h-entry","hentry"],"_links":{"self":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/posts\/683","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/comments?post=683"}],"version-history":[{"count":0,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/posts\/683\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/media?parent=683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/categories?post=683"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.brianarner.com\/weblog\/wp-json\/wp\/v2\/tags?post=683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}