Re:Congressional lawmakers 47% pts better at picking stocks
by bumby on Wednesday December 03, 2025 @12:52PM
(#46137621)
I didn’t get a chance to read the entire NBER paper, but an important nuance is that it takes an industry-normalized perspective.
It could be possible that someone in Congress has insider information about a specific industry that helps them, but not about a specific stock. For example, if I knew about specific legislation that would impact auto manufacturers I may have a better idea to get in or out of that sector without necessarily knowing if Ford will do better than GM.
To your point about meta-analysis it would also be useful to know if members are worse than normies at picking industries as well.
It could be possible that someone in Congress has insider information about a specific industry that helps them, but not about a specific stock. For example, if I knew about specific legislation that would impact auto manufacturers I may have a better idea to get in or out of that sector without necessarily knowing if Ford will do better than GM.
To your point about meta-analysis it would also be useful to know if members are worse than normies at picking industries as well.