Robert Lloyd, CFA
Disappointing, to say the least.
Insider trading laws apply to all equally, but some are more equal than others.
2 Fed regional presidents resigned in disgrace for trading their portfolios during the pandemic and emergency Fed policy implementation. (But they'll keep all their gains, I'm sure.)
It seems quaint that politicians once used blind trusts to manage their affairs when in office. I guess those days are long past. I hear there is a Tic Tok channel that follows Congressional trading patterns, but I'm not on Tic Tok. Maybe I should be.
In my book, Central Markets, I spent quite a bit of time on insider trading and why it is one of many factors explaining why active managers underperform. There has been a lot of academic work on insider trading. Here are some great papers on the topic if you are interested.
Corporate Governance and the Information Content of Insider Trades (upenn.edu)
Congressional Insider Trading: An Analysis of the Personal Common Stock Transactions of U.S. Senators (claremont.edu)
Here's my book Central Markets.
Robert Lloyd, CFA®
Chief Investment Officer
Lloyds Intrepid Wealth Management
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