CIA Coups, Great Opportunities To Make Money

Today, I want to present a different type of article, one that mixes geopolitics with insider trading and profit making opportunities. According to several studies, the stock market has reacted to several political events that no Wall Street trader should have known about.

Article Introduction (Via Slate.com)

Dube, Kaplan, and Naidu examine how the stock market reacted to events that no Wall Street trader should have known about: top-secret meetings of the coup-plotting cabals at CIA headquarters and presidential approvals of CIA-organized invasions…. These meetings and authorizations were all highly classified, however, and since you can’t trade on information you don’t have, UFC’s stock price shouldn’t have budged until the coup actually took place and the investing world learned of the regime change.

Article Excerpts (Via Slate.com)

“The CIA-led invasion of Cuba is referred to these days as the Bay of Pigs fiasco for a reason, and whoever was trading on insider knowledge seemed to place his bets accordingly—the pre-invasion increase in American Sugar’s stock price was much lower than the gains for companies affected by the other, successful coups in the study.”

“By tracking the stock prices of UFC and other politically vulnerable firms in the months leading up to CIA-staged coups in Guatemala, Chile, Cuba, and Iran, the researchers provide evidence that someone—perhaps one of the Dulleses, Cabots, or others in the know—was trading stocks based on classified information of these coups-in-the-making….”

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About Miguel Barbosa

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30. October 2008 by Miguel Barbosa
Categories: Curated Readings, Finance & Investing | Leave a comment

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