Should stock traders watch Supreme Court decisions? Research shows $140 billion benefit
About 6 percent of Supreme Court cases in the last 15 years have moved financial markets, creating a $140 billion net change in market value of publicly traded companies, according to a new research report.
The report suggests there is opportunity for traders who are quick in assessing the decisions, given the often hours-long gap between a decision and trading, the Wall Street Journal Law Blog reports.
The authors of the report are law professors at Chicago Kent and Michigan State University and a legal analytics consultant. “This is not a market that’s particularly well understood, so it’s taking a lot longer for traders to sort it out,” says one of the lead authors of the report, Chicago-Kent law professor Daniel Katz, in an interview with the Wall Street Journal Law Blog.
The report examined Supreme Court decisions that could impact publicly traded companies, and took into account broader movement in the stock market in assessing the effect on stock prices.
