I saw this item in The Economist and it occurred to me that flimsier ideas have formed the basis for stock portfolio strategies. The notion that greater lobbying expense is correlated with higher returns is intuitively attractive. Companies don't make such expenditures without an expectation of return. The companies that "invest" the most in influencing the regulatory environment are the ones that have reap the greatest from the expenditures.
Still, thirteen years is not an extensive test and it would seem that it would be an increment that woulds be arbitraged very easily. That has never been enough to deter product development in the past. And this may actually have some staying paower.
No comments:
Post a Comment