News for hackers. Stuff that matters.

A comment on Senators strike bipartisan deal for ban on stock trading by members of Congress. Parent comment

Re:Senators strike bipartisan deal for ban on stock trading ... by 0cf8612b2e1e on Wednesday July 10, 2024 @03:15PM (#40930357)
I have always wondered how this would perform. The caveat in my mind has been that there is a (significant?) lag between when the trade is made, and when it must be reported. If there is a strong buy/sell signal, I have assumed it would be cold by the time I had access to that information. Also thought a limitation of the STOCK act was that partners (?) did not have to report their data, so a savvy representative could hide their trades through direct family.

It would be fun to compare the two parties portfolios. Are there ideological companies which are helping/hurting the overall performance? One group is better at timing?

[ Parent | on HN ]
Re:Senators strike bipartisan deal for ban on stock trading ... by MOARDONGZPLZ on Wednesday July 10, 2024 @03:36PM (#40930619)
There can be a lag, but not always. Sometimes it’s just a day or so between trade and reporting. Seems like one way to derisk would be to evaluate the time between trade and reporting plus whether anything significant has happened in that timeframe.

For example, Senator buys a stock, stock jumps and plateaus a week later, buy is reported a month later would mean don’t add this to ETF.

[ Parent | on HN ]
Re:Senators strike bipartisan deal for ban on stock trading ... by twothreeone on Wednesday July 10, 2024 @03:49PM (#40930786)
I thought they have 60 days to report trades [1] and there are a bunch of stock-based investments that explicitly don't require reporting (EIF's)? Sure, if somebody decides to voluntarily file on day 1, or buy stock "raw" that's cool, but in general there should be quite significant lag or gaps (to the point where short/medium-term there's no signal basically).

[1] https://ethics.house.gov/sites/ethics.house.gov/files/docume...

[ Parent | on HN ]
Re:Senators strike bipartisan deal for ban on stock trading ... by MOARDONGZPLZ on Wednesday July 10, 2024 @07:54PM (#40932615)
You’re right that 60 is the limit, but many people file them much sooner.
[ Parent | on HN ]
Re:Senators strike bipartisan deal for ban on stock trading ... by 0cf8612b2e1e on Wednesday July 10, 2024 @03:54PM (#40930838)
That layers on a lot of complexity onto the idea of “mimic Congress stock trades”.

Now I have to decide if their hot tip hit or not. Was it a long term play? Does the committee decision get published in five weeks, so they wanted to move now?

I am sure there is signal worth exploiting, but an index fund still seems the more appropriate strategy without significant development on how to follow their moves.

[ Parent | on HN ]