Reward 500 Tiger-coinsA group of "stock market gurus" has emerged in the US Capitol in recent years. According to a new report by Unusual Whales, in the recently concluded 2024 year, the stock portfolios of over 20 members of Congress outperformed the market.
Information asymmetry for insider trading? Congress members’ returns outperform $.SPX(.SPX)$ !
Last year, stocks held by Democratic members rose by 31%, while stocks held by Republican members increased by 26%, and the S&P 500 index rose by 24.9%.
The controversial Pelosi and her husband achieved a return of over 50%. Pelosi has opposed a ban on stock trading by members of Congress, stating that congress members should be able to participate in the "free market economy."
Stocks owned by Paul Pelosi, the husband of former House Speaker Nancy Pelosi, surged nearly 71% in 2024, consistently outperforming the market in recent years.
Pelosi's returns over the past decade reached 790%, far exceeding the S&P 500's 213%.
In 2024, nine congress members outperformed Pelosi, with Representative David Rouzer (a Republican from North Carolina) leading the way with a 149% return, mainly due to his purchase of Nvidia stock several years ago.
Is Trading on Information Asymmetry a Zero-Sum Game?
But Duan Yongping, often referred to as the "Warren Buffett of China," stated in a speech last week that information asymmetry has little impact on stock trading.
He argued that investing is not a zero-sum game, while information asymmetry is. Profiting from early access to information might even be unethical.
Apart from government officials and major market players, most investors do not have access to information asymmetry.
What do you think? Is information asymmetry important in stock trading?
Is it unethical to trade stocks using information asymmetry?
If you had access to such information, would you use it to profit?
What do you think is the most important factor in stock trading?
Leave your comments and also post to win tiger coins~
Comments
我认为基于信息不对称的交易是不道德的，因为它创造了一个不公平的市场，并损害了无法获得此类信息的普通投资者。公平和透明对于维持对金融体系的信任至关重要，而内幕交易破坏了这些原则。
老实说，如果我能接触到这些信息，我会倾向于用它来谋取私利，😜。然而，我认为股票交易中最重要的因素是根据公开信息和可靠的公司研究做出明智的决定。
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