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TikTokers Are Trading Stocks by Copying What Members of Congress Do

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Re: TikTokers Are Trading Stocks by Copying What Members of Congress Do

#31

Post by csours »

knubie wrote: post #25
subsubzero wrote: post #20

Members of congress should not own or trade stock, full stop. I am so surprised that this is even legal, it gives an extremely unfair advantage to congress as they have inside info on military contracts, lawsuits and if govt. agencies initiate investigations into companies. You want to end corruption in politics(well make it less corrupt) then barring congress from owning and trading stocks and other related securiti…

The easy solution here is to just vote her out of office as she's (Pelosi) obviously corrupt, put the partisan nature of American politics makes that very difficult.

Do you think it's just one person?

Re: TikTokers Are Trading Stocks by Copying What Members of Congress Do

#32

Post by mountainb »

babesh wrote: post #28
Cryptonic wrote: post #3

Everybody made huge stock gains in the last year, it was hard work to fuck up in that market. It's not a hint for inside knowledge if you ask me and not a guarantee for future gains to follow another ones portfolio.

You must not remember those Congress people who traded in stocks after COVID-19 briefings. Wonder if you find that ok. https://en.m.wikipedia.org/wiki/2020_congressional_insider_t...

This is also a more succinct explanation for a lot of policy 'decisions' based on 'science' which are better explained by grift. "Professional association of embezzlers and frauds makes rules to maximize their loot... news at 5."

Re: TikTokers Are Trading Stocks by Copying What Members of Congress Do

#33

Post by jjeaff »

JasonFruit wrote: post #5
Hedgemaster wrote: post #2

And guess what? This following of "smart money" is in fact a self-fulfilling prophecy: after let's say Pelosi/her husband bought some stocks some large group of retail traders jump in and pump the price higher.. It likely has a negligible effect on highly liquid names like AAPL or GOOGL but might cause a significant price move for a smaller/less liquid names

And by doing that, we're further enriching members of Congress. We should be taking a mass oath to sell any stock they buy. Then, of course, they'd only invest in potential opponents' corporations. It could turn into a real arms race.

We need to just pass a law already that forbids them from purchasing or owning individual stocks. After all, assuming they aren't trading on insider information, it would be to their own benefit anyway.

Re: TikTokers Are Trading Stocks by Copying What Members of Congress Do

#34

Post by ttobbaybbob »

knubie wrote: post #25
subsubzero wrote: post #20

Members of congress should not own or trade stock, full stop. I am so surprised that this is even legal, it gives an extremely unfair advantage to congress as they have inside info on military contracts, lawsuits and if govt. agencies initiate investigations into companies. You want to end corruption in politics(well make it less corrupt) then barring congress from owning and trading stocks and other related securiti…

The easy solution here is to just vote her out of office as she's (Pelosi) obviously corrupt, put the partisan nature of American politics makes that very difficult.

and you think her replacement wouldnt take advantage of the free money? also, obviously, she's already far from the only one [0]

0: https://www.bloomberg.com/opinion/articles/2020-03-20/senato...

Re: TikTokers Are Trading Stocks by Copying What Members of Congress Do

#35

Post by [deleted] »

not2b wrote: post #21

This is unlikely to work because of the timing delay. Suppose a member of Congress has access to inside information and trades on it. They have 45 days to disclose the trade. By the time the trade is disclosed, the market has already moved: if Pelosi or McConnell or whoever bought low so they could sell high, a month later the increase is probably already baked in.

[deleted]

Re: TikTokers Are Trading Stocks by Copying What Members of Congress Do

#36

Post by hfjrkekdkfj »

brundolf wrote: post #4

I'm not a market expert, but... my gut tells me this would have some kind of corrective effect, wouldn't it? Amplifying the inside information, allowing others to capitalize on it, would even out the unfairness of the privileged position in some roundabout way, wouldn't it? Obviously scaled by the number of people actually doing this, and with how much money Or- would it have the opposite effect? Would it actually gi…

It could act like a Schelling point .

Think about this problem: a bunch of tiktokers want to do like Reddit with GameStop. But what stock to gang up on? Who proposes the stock? Having a neutral source for stock names can fix this synchronization power. Congressman traded stocks are a pretty good source, since you can't assume that your average tiktocker has any influence on that.

Re: TikTokers Are Trading Stocks by Copying What Members of Congress Do

#37

Post by wolverine876 »

subsubzero wrote: post #20

Members of congress should not own or trade stock, full stop. I am so surprised that this is even legal, it gives an extremely unfair advantage to congress as they have inside info on military contracts, lawsuits and if govt. agencies initiate investigations into companies. You want to end corruption in politics(well make it less corrupt) then barring congress from owning and trading stocks and other related securiti…

FTA, you will be happy to know (and I agree):

> Congressman Raja Krishnamoorthi, a Democrat from Illinois, is part of a bipartisan group of House and Senate members who have introduced legislation banning lawmakers from owning individual stocks.

Re: TikTokers Are Trading Stocks by Copying What Members of Congress Do

#38

Post by monocasa »

sulam wrote: post #19

Honestly people need to step back and ask if they're out-performing the market, and if so what risks they're taking to do so. Most portfolios are up over a 52 week period right now. I keep track of three numbers: what my risk-adjusted portfolio is doing, what my "fun money" portfolio is doing, and what the S&P 500 is doing. The numbers, correcting for holding periods, are 10.96%, 16.28%, 15.78%. IOW the place I keep…

I think the idea is that since up until 2012, congress was simply allowed to trade on inside information, and it certainly feels like some didn't stop. In that mindset the risk is ameliorated by indirect access to additional information. Then why isn't the whole market doing it to the point that it doesn't make sense to follow? There's a lot of capital tied up in positions that look for extremely stable stores of wealth with as low risk as possible rather than something that would accept the idea of "we're fundamentally following illegal positions".

Re: TikTokers Are Trading Stocks by Copying What Members of Congress Do

#39

Post by hpoe »

subsubzero wrote: post #20

Members of congress should not own or trade stock, full stop. I am so surprised that this is even legal, it gives an extremely unfair advantage to congress as they have inside info on military contracts, lawsuits and if govt. agencies initiate investigations into companies. You want to end corruption in politics(well make it less corrupt) then barring congress from owning and trading stocks and other related securiti…

So something you might find interesting there is a website out there https://senatestockwatcher.com/ that reports on the trades made by congress people and one of the things that was discovered is that many congress people have below or only slightly above returns on stock market trading.

That being said as far as I know it is only trades they make so there may be ways around it but just an interesting point of data.

Re: TikTokers Are Trading Stocks by Copying What Members of Congress Do

#40

Post by ceejayoz »

hpoe wrote: post #39
subsubzero wrote: post #20

Members of congress should not own or trade stock, full stop. I am so surprised that this is even legal, it gives an extremely unfair advantage to congress as they have inside info on military contracts, lawsuits and if govt. agencies initiate investigations into companies. You want to end corruption in politics(well make it less corrupt) then barring congress from owning and trading stocks and other related securiti…

So something you might find interesting there is a website out there https://senatestockwatcher.com/ that reports on the trades made by congress people and one of the things that was discovered is that many congress people have below or only slightly above returns on stock market trading. That being said as far as I know it is only trades they make so there may be ways around it but just an interesting point of data.

Is it legal for Members of Congress to pass tips on, to friends and relatives?
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