Here Are the Members of Congress Who Made the Most in Stock Trading in 2023
Congress killed it in the stock market once again, with Democrats outdoing their Republican colleagues by far, despite conflicts in some of their committee appointments, according to a new report by Unusual Whales, a market analysis group.
Some of those high-flying lawmakers included Democratic Representatives Nancy Pelosi and Brian Higgins and Republican Representatives Mark Green and Garret Graves. Senate Minority Leader Mitch McConell, Senator Tommy Tuberville, and Representative Marjorie Taylor Greene also make an appearance in the list of top officials who made bank in the stock market last year.
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— unusual_whales (@unusual_whales) January 2, 2024
I have just released the full report on politicians trading in 2023.
Like every year since 2020, US politicians beat the market.
And many in Congress made unusually timed trades resulting in huge gains.
Here are the top performers of 2023. pic.twitter.com/ykf9VICsBw
Higgins’s gains far outpaced the others’, with 238.9 percent returns over 2023, nearly 10 times the S&P 500 index, which rose 24.8 percent by the end of the year. Some of those boons were thanks to unusually timed trades, according to the popular watchdog account, begging the question: How are our politicians making such informed choices?
According to the Unusual Whales analysis, Democratic members of Congress secured a 31 percent gain in returns, far outpacing Republicans’ 18 percent gain.
Technically, it’s illegal for lawmakers to buy and sell stock based on non-public information. In 2012, President Barack Obama signed the STOCK Act, preventing members of Congress from trading based on details obtained through their work, like committee work or entertaining lobbyists.
But as long as a trade is reported in 45 days, U.S. legislators are free to trade however they want, even if the bills they pass or reject could influence a company’s performance and help them line their own pockets.
For example, several lawmakers sitting on the House and Senate committees that regulate the financial industry sold Silicon Valley Bank stock before it crashed.
“One thing people always say is that members are very good at picking stocks, that’s often assumed … but to be quite frank, members were also quite good at avoiding losses,” the founder of Unusual Whales told ABC News in an anonymous interview last year.
Some of the biggest purchases included members on the House Oversight and Accountability Committee scooping up health care stocks in 435 separate transactions, buying financial services stocks in 328 separate transactions, and technology stocks in 272 separate transactions. The House Armed Services Committee saw similar conflicts, with members scooping up health care stocks in 392 separate transactions and financial services stocks in 277 separate transactions, according to data from Unusual Whales.
Representatives Ro Khanna, a California Democrat, and Michael McCaul, a Texas Republican, had the most eyebrow-raising activity. Khanna, who sits on the House Armed Services and House Oversight and Accountability committees, made 1,589 separate purchases in health care, financial services, technology, consumer cyclical, industrials, consumer defensive and real estate while selling nearly $26 million worth of other stocks. McCaul, meanwhile, purchased tech stocks in 142 separate transactions while sitting on the House Foreign Affairs and House Homeland Security committees. He also sold $10.4 million in technology stocks, $9.5 million in communication services, $9.2 million in financial services, $6.6 million in consumer cyclical, and $6.4 million in health care stocks.