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As we’ve previously noted intermittently over the past few years, given their well-established skill at outperforming the market, the Pelosis have inspired an entire genre of retail investing. A committed group of copy traders tries to replicate every stock-picking move gleaned from delayed trade disclosures that all Congress members must submit.
An example of this phenomenon is Tempus AI, whose stock surged by 36 percent intraday a few months ago when it became public knowledge that Nancy Pelosi had purchased the stock.
According to Quiver Quant’s tabulation, copying Nancy Pelosi’s every stock trade would have yielded a remarkable 720 percent gain since May 2014. In contrast, the SPY ETF (which tracks the S&P 500 index) managed only a 238 percent increase in the same period.
President Trump has recently pounced on this issue by publicly questioning how “these two very average minds beat all of the super geniuses on Wall Street.” This is not the first time Trump has raised concerns about Nancy Pelosi’s stock trading practices. He has repeatedly called for her to be investigated for insider trading, a charge she has denied numerous times.
In response to this relentless scrutiny, Nancy Pelosi recently supported the PELOSI (Preventing Elected Leaders from Owning Securities and Investments) Act, currently championed by Senators Josh Hawkey and Kirsten Gillibrand. This act would bar lawmakers and their spouses from trading stocks.
If passed, this legislation could deprive retail traders of a consistent source of alpha.
📚 Reading Comprehension Quiz
According to the passage, which of the following statements is true regarding Nancy Pelosi's stock trades and their impact on retail investors?
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