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Despite widespread public support for this practice, members of Congress are investing in the stock market.
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People imitated the Congressman’s portfolio and invested at least $55 million over two years.
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Pelosi’s trade value reportedly increased by 45% in 2023, while Crenshaw’s trade value increased by 41%.
An app that allows users to trade in the same way as members of Congress and powerful investors has surpassed $100 million in total investment. Despite the success, the app’s co-founders were adamant that they expected Congress to ban the transaction.
Autopilot, released in January 2023, captures transaction data submitted by legislators and allows users to copy their own transactions. Since the passage of the Stop Trading on Congressional Knowledge Act (STOCK) in 2012, members of Congress are required to report their own and their immediate family’s investments within 45 days or face fines. became.
The app allows users to imitate investments made by prominent hedge fund managers like Michael Burry, the subject of the 2015 film The Big Short, through federally required 13F filings. You can also do it.
Chris Josephs is the co-founder of the platform and runs the popular “.Nancy Pelosi Stock Tracker“At X, the app easily passed the $100 million trading milestone on Monday, with more than $55 million copied from trades that copied trades submitted to Congress,” he told Business Insider.
The app does not allow users to imitate every lawmaker. Instead, it emulates four members of Congress, Nancy Pelosi, Dan Crenshaw, Debbie Wasserman Schultz, and Dan Goldman, and “2022 Performance-Based Politics.” It offers a combination of stocks from the top 10 home traders.
Josephs said Crenshaw and Pelosi’s portfolios were created by her husband, Paul Pelosi, two of the senator’s most popular candidates.
Pelosi’s reported trade value increased by 45% in 2023, while Crenshaw’s trade value increased by 41%, according to in-app statistics.
Asked for comment on this story, Crenshaw’s office spokesperson Cory Schielmeyer told Business Insider that their boss “is not a billionaire and has invested almost nothing in the market.” he said.
A representative for Pelosi’s office declined Business Insider’s request for comment.
Fighting Congressional Stock Trading
In late 2021, then-House Speaker Pelosi said she opposed a ban on stock trading by members of Congress and their families, sparking a massive public outcry and reversing her position on the issue.
Several Republican and Democratic lawmakers tried to ban the practice in 2022, to no avail. A group of Democratic senators introduced a similar bill in the next Congress, 2023, but it is still pending in committee.
“That’s why we do this,” said Josephs, an Autopilot spokesperson. “To be honest, it’s also to keep our feet to the fire. We’re not going to walk away.”
Donald Sherman, deputy director of Citizens for Responsibility and Ethics in Washington, said he thought the app was a “smart idea.” He’s not surprised to hear that many members of Congress have more successful trading portfolios than the average investor.
“If we take the most generous view, their entire body of work lends itself to a careful study of market trends, economic factors, and experience with what moves the market, something that most traders need and envy.” I think so,” he said.
as joseph on autopilot I put it: If you can’t beat them, join them.
Read the original article on Business Insider
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