What Stocks Are U.S. Politicians Holding?
Jul 22, 2022What is Congress Trading?
Ever wonder how politicians are using their positions on Capitol Hill and insider congressional knowledge on nonpublic information to grow their portfolios?
Thanks to the STOCK Act legislation, we can get congressional stock trading this data!
Each member of congress is required to disclose which stocks they or their spouses have bought and sold on the stock market within 45 days of the transaction, and the approximate amount of their stock transactions.
That's why we created this visual to quickly show the largest of these individual stock trades from the last 60 days.
In the chart above, each bubble corresponds to a trading stock and side of the transaction (buy vs. sell).
We can quickly see the direction of the trade indicated by the color and centrality of the bubble, as well as the aggregate size of that trade indicated by the size of the bubble.
So a big green TSLA bubble means congress is going on a shopping spree of your favorite EV manufacturer.
Because Congress members are only required to disclose a range of the transaction amount, we provide the lower bound of that range when you hover over the bubble. This gives a conservative estimate of how much insider trading is happening.
We update the data daily to keep you informed. So make sure to check-in all the time!
So, why does it matter?
It's no secret that Supreme Court and congress members are privy to material non-public information. They use this information to build their wealth through the financial market; however, because they are required to disclose this information, we can get a general sense of their sentiment through their trades of stock and MLPs. If you’re wondering, “what is an MLP,” make sure to read up on the topic before diving into the world of trading on the stock market.
We can even see if they are bullish or bearish as a group on individual stock transactions.
And if you've seen the headlines over the last year, their holdings have been of hot debate in regard to government ethics.
How to use it?
The simplest use case is to see the direction of trades as a whole.
More red in the bubble chart means they are selling off their assets and more green means they're buying up those stocks.
Because this information is a little delayed, you probably wouldn't follow each lawmaker’s trades exactly, but you can think of this as a specialized version of sentiment.
So if congress is selling off your favorite stock, it might be time to re-evaluate that position.
Or, if congress is buying up some unloved stock, there may be a catalyst for growth in the near future.
However, this tool in isolation should not be used as the sole reason you buy or sell a stock. However, you should use this tool in conjunction with what different types of stocks you/we like! It's just another way to add conviction to the investments you're holding.
We've also included a table version of this data below!