Elected members of the United States Congress managed to beat the stock market. Reuters Breakingviews columnists Reynolds Holding and Richard Beales weigh on reasons for the outperformance, including a lack of regulation of their trading activities.
“Well, it is just like insider trading,” Holding says. “It is inside information. But that’s the interesting thing. The government has been hands-off on this, and this is because they claim, look, these senators â€¦ and representatives, they don’t have a duty to anyone not to trade, to disclose this information. So it’s not illegal for them to have this information about a bill that’s coming upâ€¦.”