Drudge Retort: The Other Side of the News
Tuesday, January 14, 2020

Sens. Elizabeth Warren (D-MA) and Chris Van Hollen (D-MD) want to know whether any Mar-a-Lago members had advanced knowledge that the Trump administration would kill a top Iranian general -- and whether they used that knowledge to game the stock market.

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whether any Mar-a-Lago members had advanced knowledge that the Trump administration would kill a top Iranian general

No.

and whether they used that knowledge to game the stock market.

Yes.

#1 | Posted by REDIAL at 2020-01-14 09:19 PM | Reply | Funny: 1 | Newsworthy 1

I'm looking forward to a change in leadership that doesn't "game" the system as much as a system that doesn't allow the "game".

#2 | Posted by LesWit at 2020-01-14 10:28 PM | Reply | Newsworthy 1

In the hours after the attack, the senators pointed out, stock prices for military contractors Northrop Grumman, Lockheed Martin and Raytheon increased over 5%, 3.6% and 1.5%, respectively. Crude oil prices also jumped more than 4%.

Hmm, wonder what the historical data says on corrections between these three assets and media announcements of drone strikes, versus a control of non-announced drone strikes. Would be some fun data analysis.

#3 | Posted by GOnoles92 at 2020-01-15 01:23 AM | Reply

Hmm, wonder what the historical data says on corrections between these three assets and media announcements of drone strikes, versus a control of non-announced drone strikes. Would be some fun data analysis.

#3 | POSTED BY GONOLES92 AT 2020-01-15 01:23 AM

media announcements are not the same as telling the Cronies at Mar a Lago.

The issue is not how the strike affected the market. The issue is that only a few people had advance knowledge that made everyone else their patsies.

The Stock market is an exchange, It never creates wealth or destroys it. All it ever does is change whose pockets the money is in.

Person A starts with X dollars and Y shares of stock.
Person B starts with Z dollars and W shares of stock.
The two of them have X+Z dollars and Y+W shares of stock.
Person A buys V shares of stock from person B for T dollars.
Person A now has X-T dollars and Y+V shares of stock.
Person B now has Z+T dollars and W-V shares of stock.
The two of them still have X+Z dollars and Y+W shares of stock.

Buying low and selling high does not create wealth. It means some Schmuck sold low and another Schmuck bought high and at the end of the day the number of dollars is the same.

Trump telling the guests at Mar-a-Lago made all other investors uninformed schmucks

#4 | Posted by hatter5183 at 2020-01-15 02:02 PM | Reply | Newsworthy 1

Trump telling the guests at Mar-a-Lago made all other investors uninformed schmucks
#4 | Posted by hatter5183

Its a little more complicated than that example. Valuations of a company at-large could be inflated due to below average trading day volume, rising the price-per-share, moving the price +$$ on light flow, but now all overall holders are +$$ in the green and moves can be made to exit at the new price.

I'm curious whether drone strikes at all, are actual influential market-movers. Moves are made every day but there aren't always concrete reasons why things go up or down.

#5 | Posted by GOnoles92 at 2020-01-15 02:11 PM | Reply

but now all overall holders are +$$ in the green and moves can be made to exit at the new price.

Nobody can "exit" They can sell but only if someone else buys. No new money just out of one pocket into another.

#6 | Posted by hatter5183 at 2020-01-15 03:47 PM | Reply

Exactly, price moves easily in low volume, sellers get out at the higher price, buyers see the momentum and are optimistic at the outlook given the move.... and it could go up or down from there.

#7 | Posted by GOnoles92 at 2020-01-15 04:39 PM | Reply

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