The NPR Politics Podcast
Trading Stock, Congressional Style
Jul 4, 2024
Explore the intriguing world of congressional stock trading, where lawmakers' investment strategies become public fodder. Discover how political affiliations influence market performance and the ethical dilemmas that arise. The hosts experiment with replicating congressional trades, sparking debates on insider knowledge versus random strategies. Uncover a quirky study comparing elite traders to reindeer in their stock selections, shedding light on herding behaviors. Delve into the proposed regulations aimed at curtailing individual stock trades by politicians.
09:57
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Quick takeaways
- ETFs Nance and Cruz mimic Congress members' stock preferences, revealing divided party investments.
- Proposed 'Ending Trading and Holdings in Congressional Stocks Act' aims to prohibit lawmakers from individual stock trading.
Deep dives
ETFs Modeled After Congress Trades
A trader created ETFs based on trades by members of Congress, using publicly available disclosure forms to mirror Democratic and Republican lawmakers' investment strategies. The ETFs, Nance and Cruz, reflect the different parties' holdings, with Nance showing Democratic preferences for software and pharmaceuticals, while Cruz leans towards oil and gas companies. Despite performance variations, questions arise on lawmakers potentially using inside information for market gains.
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