Psst, want a stock tip? Check out the stocks that members of Congress are buying. That’s what some TikTok users are doing.
A community of young investors on the social media platform TikTok are using House Speaker Nancy Pelosi’s stock-trading disclosures as a guide to their own investing, NPR reported.
One user of the video-sharing platform called Pelosi the market’s “biggest whale,” while another called her the “queen of investing.”
The Democrat representative from California has also been described as the “Matriarch of Corruption in Washington DC” by Compton Jay, a popular socialist voice on social media. Some have accused her and other members of Congress of enriching themselves using insider information from pending votes on policies and legislation.
Earlier this summer, Pelosi’s husband, Paul Pelosi, exercised a bullish bet on Google’s parent company, Alphabet, in a transaction that netted him $5.3 million. The timing is questionable, according to Compton Jay. The deal came just as the House Judiciary Committee voted on having more oversight on big tech.
“The Matriarch of Corruption in Washington DC is at her old INSIDER TRADING tricks again! Working to pass subsidies for electric cars then buying $1 mil in Tesla stock Most of Pelosi’s wealth is gain from INSIDER TRADING,” Compton Jay tweeted. He hosts “The Populist Voice” on YouTube — an independent left media network of podcast shows focused on left politics, according to its YouTube description.
But TikTok users are riding the stock moves her husband makes, which the speaker has to disclose. A Pelosi spokesperson said that the speaker does not personally own any stocks and that the transactions are made by her husband.
“Shouts out to Nancy Pelosi, the stock market’s biggest whale,” tweeted @ceowatchlist. Another said, “I’ve come to the conclusion that Nancy Pelosi is a psychic,” adding that she is the “queen of investing.”
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When TikToker Chris Josephs noticed that the trades made by Paul Pelosi were performing well, he started following Nancy Pelosi’s stock disclosures. Under the Stock Act, the Democrat Speaker and other lawmakers must disclose stock trades and those of their spouses within 45 days.
Josephs is the co-founder of online platform Iris, which shows other people’s stock trades. On Iris, you can get a push notification every time Pelosi’s stock trading disclosures are released. Josephs is personally investing when he sees which stocks are picked.
“I’m at the point where if you can’t beat them, join them,” Josephs told NPR, adding that if he sees trades on her disclosures, “I typically do buy… the next one she does, I’m going to buy.”
In 2020, Tim Carambat created two public databases of lawmaker financial transactions — House Stock Watcher and Senate Stock Watcher. Senate and House members have filed more than 4,000 financial trading disclosures — with at least $315 million of stocks and bonds bought or sold so far this year, according to Carambat.
Peolsi isn’t the only politician benefiting from the inside track. Republican senators Richard Burr and Kelly Loeffler both had inside information of the then-upcoming covid-19 crisis when they sold shares in January 2020.
Burr sold $1.7 million worth of stock holdings. Loeffler, wife of New York Stock Exchange chairman Jeffrey Sprecher and then the richest member of Congress, unloaded up to $3.1 million worth of stock after getting closed-door briefings on the covid-19 crisis, Fortune reported.