I've been doing it all wrong. Don't slam the politicians and lobbyists, embrace them.
[told ya -ed]
Via Professor Jeffrey Pontiff's Boston College website:
From the paper:
...Political decisions made by governments can move stock prices because such decisions often have profound implications for corporate strategies and firm profitability. As a result, political decisions are of considerable interest to financial market participants.
Lobbyists, through their interaction with legislators, can have access to nonpublic political information, such as the likely outcome of various legislative votes, regulatory proceedings, congressional investigations, and so on. A Wall Street Journal article (“Hedge Funds Use Lobbyists for Tips in Washington”, Wall Street Journal, December 8, 2006) reports that hedge funds are findingWashington to be a “gold mine of market-moving information.”They hire lobbyists not to influence the government, but to obtain private information about ongoing or impending government actions. The article quotes a congressional aide as saying “[t]he amount of insider trading going on in these halls [of the Capitol] is incredible.”...