10 Stocks American Politicians are Buying in 2024

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In this article, we will take a detailed look at the 10 Stocks American Politicians are Buying in 2024. For a quick overview of such stocks, read our article 5 Stocks American Politicians are Buying in 2024.

American politicians using their insider knowledge and influence to make money off the stock market has piqued the curiosity of researchers and average investors for decades.  Despite huge controversies and calls for an increased scrutiny and a ban on stock trading for politicians, American senators and Congress members continue to trade stocks. A report by Unusual Whales talked in detail about the performance of American politicians' stock picks in 2023. The report said that of the 100 Congress members trading stocks last year, 33% beat the S&P 500.

Which Stocks American Congress Members Like?

The report also showed that the most popular stocks among American politicians last year were from healthcare, financials and technology industries. The portfolios of Democrats performed better than those of Republicans since the latter group was heavy on financials, oil, and commodities, while Democrats benefited from their investments in technology companies.

Congress Stock Picks Performance and Returns: An Independent Analysis

It's not only the mainstream financial publications and news outlets that closely watch American politicians' stock trades. Investing enthusiasts equipped with data analysis skills also take a huge interest in analyzing the benefits of following Congress stock trades over the long term. For example, three years ago, someone on Reddit analyzed data available on a website called Senate Stock Watcher and processed over 9,000 stock trades initiated by the members of US Congress to see how these stocks perform. This Redditor crunched numbers and found returns of stocks for a month, a quarter and since 2019 through the date of their analysis. The idea was to see how Congress stock picks performed in the short term and long term. Results shows that Congress members are long-term investors since their stock picks beat the S&P 500 by about 6%. However, even for short-term time windows, Congress members' stock picks beat the market albeit with narrow margins.

While the STOCK act signed into law by former President Barack Obama significantly limited insider trading by Congress members, data shows that US politicians and insiders sprang back into action when the COVID-19 pandemic hit.  A research showed that between February and early April of 2020, 12 senators made 227 stock purchases worth about $98 million, while 37 House members did 1,358 trades worth as much as $60 million.