Staff Reports
In a surprising turn of events, a recent report by Unusual Whales, a market analysis group, revealed that members of Congress outperformed the stock market last year, with Democrats showing a significant lead over their Republican counterparts. This news has drawn attention to the investing habits of various politicians, leading to a closer look at their financial activities.
Members of Congress outperformed the stock market in 2023 https://t.co/0ipeitieyt
— Bob (@Bob12151959Bob) January 4, 2024
Among the standout performers, Rep. Brian Higgins (D-NY) boasted an impressive 238.9% returns over 2023, nearly 10 times the increase in the S&P 500 index. On the Republican side, Rep. Mark Green (R-TN) also had a strong showing with a 122.2% return. Green, in his defense, emphasized his lack of control over his investment accounts, pointing to a letter he wrote to his stockbroker in 2020, disavowing any involvement in decision-making. He adamantly stated his belief in the impropriety of using insider information for personal gain, expressing his commitment to ethical investment practices.
The Unusual Whales analysis showed that, overall, 33% of the 100 trading members beat the market in 2023. Notably, Democratic members of Congress secured a remarkable 31% gain in returns compared to the Republicans’ 18% gain. This divergence in performance has stirred up discussion about the investment strategies favored by each party. Democrats were reportedly more inclined to invest in tech, while Republicans leaned towards financials and oil, which had a tough year.
Notably, efforts to address the issue of stock trading by lawmakers have been met with resistance. Despite bipartisan support and multiple attempts to implement stricter regulations, proposed measures to ban lawmakers from trading individual stocks have fallen short. A bipartisan push in the House garnered 69 co-sponsors, and another recent effort sought to ban lawmakers, the president, the vice president, Supreme Court justices, and top Federal Reserve Board officials from owning individual stocks. However, these attempts at reform have yet to gain significant traction.
It’s clear that the outperformance of certain members of Congress in the stock market has brought attention to the broader issue of financial transparency and ethical conduct. As the debate about potential regulatory changes continues, the investing habits of lawmakers remain a contentious topic, sparking discussions across party lines about the need for greater accountability and oversight in the realm of congressional stock trading.
