US politicians are mandated to regularly report their stock and similar investments to prevent potential conflicts of interest, aiming to curb the misuse of their power for unfair financial gains. Despite this, recent reports show many politicians earning above-market-average returns.
In the midst of a tumultuous year in Congress—where Kevin McCarthy failed to secure the Speaker position after 14 attempts, Mitch McConnell faced a freeze on camera, and George Santos was expelled—US politicians did not shy away from trading. Their foresight into government actions provides them with a significant advantage in stock and even crypto markets.
The 2023 trading report reveals that 33% of the 100 trading members outperformed the SPY index with their portfolios, with Democrats outpacing their Republican counterparts by a considerable margin.
The number of transactions made by politicians has decreased, and they are shortening the disclosure time and utilizing the notes feature, which is seen as a move against transparency.
The report lists the most successful politicians based on their earnings, possibly hinting at the need to delve into the trading details of some prominent figures.
One such figure is Democrat Nancy Pelosi, whose husband repurchased Nvidia shares right after her visit to California—a week before President Xi’s visit—and before President Biden announced new semiconductor focuses for the US. This was shortly followed by the US Commerce Secretary’s announcement that Nvidia could sell slower AI chips to China to comply with US export controls, and Nvidia’s release of a modified advanced chip to circumvent US restrictions, making the $2 million purchase well-timed. The report by Unusual Whales continues to stir the US media and put politicians in a tight spot.