Enclosed is link to another superb article dated 16th October 2010 by Jason Zweig,
“What Conflict of Interest? How Power Blinds Us to Our Flaws”
It is about how dozens of powerful people on Capitol Hill actively traded during the financial crisis.
According to me, power enforces the illusion that one is larger and more brilliant than the market.
The author quotes Meir Statman, of the Santa Clara University,
If you passed a law saying that [members of Congress and their staffs] can only invest in index funds, on the whole you would do them a great favor, for two reasons," says Meir Statman, a finance professor at Santa Clara University. "First, they won't be reading news coverage about themselves that they and their constituents don't like. And two, they're more likely to make more money on index funds than by trying to outsmart the market."
Well said! Mark
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