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Congress massively outperforms stock market (again)

Former House speaker Nancy Pelosi celebrates beating the markets once again. Credit: Getty

January 3, 2024 - 6:00pm

The US Congress once again outperformed the stock market in 2023, according to new analysis by financial platform Unusual Whales.

In a rare display of bipartisanship, members from both sides of the political aisle had bumper years, including familiar names such as Nancy Pelosi and Susan Collins, who outperformed the market by 41.7% and 30.7% respectively. It is the third year running that Congress has now beat the market.

The biggest standout was Democratic New York Representative Brian Higgins, who saw the highest returns out of both houses, beating the market by 214% and seeing approximately double the return rate of the runner up (Rep. Mark Green). Higgins has a background in finance and large holdings in Nvidia, a stock in which Pelosi’s husband has also controversially invested

The portfolios of Democratic members of Congress outperformed the market by about 10% on average in 2023, while Republicans were about six points below the market. Republicans invested more in financials and oil, which had a lean year, while Democrats preferred tech investments.

Some representatives who have previously expressed support for restrictions on Congressional stock continued to benefit from the practice in 2023. For example, Democratic Rep. Ro Khanna has publicly supported a stock trade ban for members of Congress, but his family disclosed more than 1,500 separate stock market transactions in 2023 worth well over $10 million. 

Several top beneficiaries of the stock trade within Congress have defended the practice in recent years as participation in the free market, including Pelosi and Dan Crenshaw. The latter said in 2022 that he was sceptical of bans on Congresspeople trading stocks because “you have no way to better yourself” as a member without doing so. He added that such a ban could discourage those who aren’t extremely wealthy from running for Congress. Crenshaw’s portfolio saw 38% returns in 2023, beating the market by 15%. 

Unusual Whales caused a storm after publishing its inaugural report on Congressional stock trading in 2021, which showed many members of Congress beating the market by massive margins, in part through investment decisions related to bills that they voted on. The report sparked a national discussion and a bipartisan push to limit the trading abilities of members of Congress and their families. After months of public pressure, even Nancy Pelosi, whose husband has seen prolific success in the stock market, said she was open to banning the practice if her colleagues in the House brought forward legislation on the matter. 

Republican Sen. Josh Hawley and Democratic Sen. Kirsten Gillibrand subsequently proposed legislation to ban Congress members from trading stocks in July this year, which was followed by a similar proposal from Democratic Sens. Jon Ossoff and Mark Kelly in September. Neither bill has yet come up for a vote. 

“Elected officials don’t just make policy; they also have access to valuable information that shapes different industries and the entire economy,” Kelly said in September. “Members of Congress should be focused on representing their constituents, not their stock portfolios.”


is UnHerd’s US correspondent.

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Jonathan Andrews
Jonathan Andrews
9 months ago

H0: politicians are not using inside information to beat the stock market.
H1: politicians are using inside information to beat the stock market.

Is P(such big gains given they are not using inside information) less than 5%?

Sonny Ramadhin
Sonny Ramadhin
9 months ago

Of course not. It must be at least somewhat likely that elected politicians are just so intellectually superior.

Ethniciodo Rodenydo
Ethniciodo Rodenydo
9 months ago
Reply to  Sonny Ramadhin

It is more simple than that.
They invest in a company and then either direct government money the company or pass laws that require us to purchase the company’s products
What we need is a firing squad on piece rates

Mark Kennedy
Mark Kennedy
9 months ago
Reply to  Sonny Ramadhin

…or ethically inferior, take your pick.

Right-Wing Hippie
Right-Wing Hippie
9 months ago

I don’t see any point in going into politics if you’re not going to get rich. I mean, otherwise you’d just spend all your time hanging around politicians.

Warren Trees
Warren Trees
9 months ago

Power is the oldest aphrodisiac.

Right-Wing Hippie
Right-Wing Hippie
9 months ago
Reply to  Warren Trees

It’d have to be; have you seen most politicians?

Paddy Taylor
Paddy Taylor
9 months ago

What the hell is the point of working so hard to become “An Insider” if you can’t take advantage of a bit of “Insider trading”?
https://www.youtube.com/shorts/OuNPbqsoDus

Mark Kennedy
Mark Kennedy
9 months ago
Reply to  Paddy Taylor

“Yeah, what the hell is the point of working so hard for the welfare of voters whose best interests we’re here to screw? Oh, wait…”

Tom Condray
Tom Condray
9 months ago

I’m shocked shocked to learn that our elected representatives may be manipulating their legislation in conjunction with their investments in the stock market to obtain substantial returns that are consistently well above average.
Surely this is just another vile calumny laid against those selfless guardians of the Constitution who work tirelessly on our behalf to create a better America?
I cannot believe Unherd would permit this sort of reckless character assassination to be seen in print, even if only electronically.
Wherever are the vigilant disinformation police when one needs them?
Oh the pain, the pain!

Terry M
Terry M
9 months ago

What is really obscene is that Washington DC became the richest city in the US a few years ago. And DC includes some pretty awful slums in the E/SE sector.
Ponder that. Wealthier than NYC, SF, Chi, Atl, LA, Sea, Boston, Philly, and the rest.
It is due to both Congressional salaries/perks and the huge number of high salary parasites sucking on the govt teat.

McExpat M
McExpat M
9 months ago

I loathe these people. Utterly, completely. Maybe it’s time for anyone not invested in the stock market to go on a peaceful strike, Don’t show up. Can you imagine the chaos whence the world grinds to halt except for the bluddy bells at NYSE and associated bourses?

Bernard Brothman
Bernard Brothman
9 months ago

I wish Vanguard or Schwab sold these as investment portfolio options in 401k and IRA plans.
Imagine, the Pelosi Portfolio. Invest like an insider.