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%.
Join the discussion
Join like minded readers that support our journalism by becoming a paid subscriber
To join the discussion in the comments, become a paid subscriber.
Join like minded readers that support our journalism, read unlimited articles and enjoy other subscriber-only benefits.
SubscribeH0: 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%?
Of course not. It must be at least somewhat likely that elected politicians are just so intellectually superior.
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
…or ethically inferior, take your pick.
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.
Power is the oldest aphrodisiac.
It’d have to be; have you seen most politicians?
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
“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…”
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!
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.
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?
I wish Vanguard or Schwab sold these as investment portfolio options in 401k and IRA plans.
Imagine, the Pelosi Portfolio. Invest like an insider.