Poor Senator

Quick, name a poor senator!

Strategies for investing on an uneven playing field

 

This site is for anyone frustrated with the seemingly unbreakable link between monied interests and Washington DC.  The site also seeks an exchange of ideas on how to make that axis of power and money work to our advantage with smart investment choices based on the DC power base

 

Comments: chiefofstaff@poorsenator.com

Commentary on how an investment portfolio can be designed to take advantage of political corruption

On October 26, 2010 the United States slid from number 19 to number 22 on the Global Corruption Index, where it remains today, just behind the UK and ahead of Japan.  In some ways this reflects the growing influence on money in Washington DC.  Corporations and CEOs spend heavily and spend considerable time advising candidates.  They don't do this out of charity.  They expect a return on the investment. 

In Novermber 2010 a report on the net wealth of members of congress showed that their net wealth actually increased from 2008 to 2009, a period during which the net wealth of average Americans declined in a tough economy.  How did these members of congress see their investments value increase while the markets saw devastating declines?  Perhaps they gleaned some valuable information from their corporate donors and perhaps they knew where to invest given the coming legislation, they themselves were crafting. 

 

A study referenced in Barrons shows that investment portfolios of members of congress significantly outperfom fund managers.  How are members of congress, few of whom have worked in the financial industry, able to outperform the market and professional money managers?  Is it because they are privy to inside information that puts them at a significant advantage.  I would argue that is exactly why.

 

Link to Barron's Article

 

It is no use fighting the tide.  The system is not going to change.  But why not profit from the political corruption yourself?  How?  Design an investment portfolio of companies led by executives who have the ear and the wallet of the candidates.  I recently began doing this myself and I have established a segregated investment portfolio with an asset allocation tied to politically connected companies. We shall see if my asset allocation works as well or better than the market and money managers.


As the site evolves I will look for feedback, advice, open discussion.  For now just take a look at what is in my investment portfolio of investments relying on political corruption.  Explanations of investments purchased in the offerings page.