Congressional Stock Trading: Who Trades and Makes the Most

A recent analysis unveiled the stock trading activities of Congress members, revealing insights into their investment behaviors and returns.

Over 100 lawmakers have engaged in 10,000+ stock trades annually since at least 2021, consistently outperforming the market. These trades often involve well-known companies like Microsoft Corp (MSFT:US), Apple Inc. (AAPL:US), and Alphabet Inc. (GOOGL:US).

Some members strategically timed trades related to legislation they oversee, raising concerns about potential conflicts of interest and insider trading. For instance, during negotiations of the CHIPS Act and Science Act, several lawmakers, including former House Speaker Nancy Pelosi, traded Nvidia Corp (NVDA:US) stocks. Senator Tommy Tuberville, while serving on the Agriculture Committee, traded corn futures.

Capitol Trades reports 118 members executed 11,491 trades in 2023 involving assets worth $751 million. Unusual Whales estimates around 11,000 trades in 2023, valued at over $1 billion.

Among the most active traders in 2023 were Representative Ro Khanna, Michael McCaul, and Daniel Goldman. Their trading volumes ranged from thousands to millions of dollars.

In terms of sectors, technology, energy, healthcare, defense, and financial services dominated members' trading activities. Notably, Microsoft and Alphabet were consistently among the most bought and sold stocks.

Democrats saw an average return of 31.18%, while Republicans averaged 17.99% in 2023, which is compared to the S&P 500's 24.23% return, as per data estimates from Unusual Whales.

Concerns persist regarding potential conflicts of interest, prompting calls for stricter regulations. Despite bipartisan proposals, such legislation has yet to gain traction.

The public overwhelmingly supports a ban on congressional stock trading, citing concerns about conflicts of interest

As debates continue, the spotlight remains on Congress, urging transparency and accountability in their financial dealings.