Can you consistently beat the stock market? I have been trying with new data set

2 points by darkhorsetrades 2 days ago

I've been digging into some peer-reviewed studies and meta-analyses concerning market anomalies in publicly available trading data, specifically focusing on insiders and politicians.

A few findings from the research consistently stood out:

Insider Buys: Portfolios designed to systematically follow insider buys (not sells) have been shown in some studies to outperform their benchmarks by an average of around 10.2% annually.

Late-Filed Trades: One of the more curious findings was related to trades filed past the legal 2-day deadline. Research suggests these late filings have preceded short-term returns of around 2.1% over a 3-month period.

Politician Trade Analysis: Tracking the public disclosures of politicians also yields interesting data. For example, an analysis of Senator Ron Wyden's disclosed trades from last year showed a return of +123.8%.

This is all based on data I've aggregated from academic sources. I'm curious if anyone else has explored these documented inefficiencies or has thoughts on the viability of strategies based on this type of public information.

I’m happy to share links to the specific studies I'm referencing if anyone is interested.