Senators’ Abnormal Gains Vanish After STOCK Act

Time was when U.S. senators enjoyed some “informational advantage” that helped them make some abnormal gains on the stock market – as much as 8.8% annualized. Such gains have vanished since an exposé by the legendary 60 Minutes television show, followed by the passage of the Stop Trading on Congressional Knowledge, or STOCK Act in 2012, according to a study published Jan. 24. “Post-60 Minutes, we find no evidence of continued outperformance in market-value weighted portfolios,” wrote Ian Cherry of the University of South Florida, and Amanda Rae Heitz and Candace Jens of Tulane University’s A.B. Freeman School of Business….