Representative Alexandria Ocasio-Cortez (D-NY), part of the progressive “squad,” frequently faces criticism for her dealings with city council peers. Interestingly, a recent analysis reveals that about 25% of her fellow members in Congress’ Progressive Caucus are heavily invested in the stock market.
A total of 24 Progressive Caucus members possess substantial stock portfolios, as shown by annual disclosures sent to House clerks.
One prominent trader, Morgan McGarvey (D-KY), who serves as one of the Caucus’ vice-chairs, astonishingly reported a 106% return on his investments in 2024. This approach is often referred to as the “Pelosi method,” which significantly outperformed the S&P 500’s 25% annual return.
McGarvey, 45, has claimed to represent the voice of working-class communities as Kentucky’s sole Democrat in Washington. His net worth stands at around $1.6 million, according to an alternative data platform named Quiver Quantity.
Kentucky Democrats, critical of former President Trump, labeled him “unfit to serve,” but that didn’t prevent Trump’s media company from engaging in stock trades valued between $1,000 and $15,000 after the last election.
Another prolific trader in this cohort is Representative Ro Khanna (D-CA). He’s been quite active, engaging in over 34,272 trades since his election in 2017, with 3,424 of those occurring just in the past year alone, amounting to about $30 million in stock transactions.
During volatile periods, like when Trump’s “liberation day” tariffs struck fear in the market, Khanna and others from Silicon Valley capitalized, trading heavily. Khanna’s disclosures for 2024 alone span an immense 333 pages. However, supporters argue that external advisors are managing family trusts and thus, he isn’t directly involved in trading.
Despite Ocasio-Cortez’s frequent criticisms of stock trading among lawmakers, many of her allies seem to be profiting from it. Michael Auerbach, the founder of Subversive ETFs, raised concerns, saying it’s absurd for politicians to trade stocks and suggesting they should focus on legislative duties instead.
Khanna’s team insists he advocates for a ban on trading and supports a Congressional Trust Act to ensure independent management of trusts.
Several other progressives have also struck notable stock deals, including:
- Rep. Val Hoyle (D-OR) faced scrutiny for a 217-share transaction between $245,215 and $3.3 million, involving major companies like Boeing and ExxonMobil, despite claiming it was poorly advised.
- Rep. Jonathan Jackson (D-IL) is reported to have neglected to disclose 31 share transactions on time, generating a remarkable 43.1% return on a $1.5 million portfolio.
- Rep. Sara Jacobs (D-CA), related to a telecommunications billionaire, boasts an $18 million stake largely in Qualcomm, defending her involvement as a co-sponsor of the Congressional Trade No-Trade Bill.
- Rep. Dwight Evans (D-PA) achieved a striking 42% return in his portfolio and is involved in transactions related to biotechnology stocks.
- Rep. Lloyd Doggett (D-TX) has been accused of trading stocks like Johnson & Johnson while advocating for a trade ban, stating he’s held his investments for years.
- Rep. Judy Chu (D-CA) has also made numerous trades worth millions since entering Congress, which have raised eyebrows among critics.
Auerbach argues it should be illegal for lawmakers to trade stocks, especially those affecting sectors tied to their legislative roles.
Ocasio-Cortez mentioned in a recent fundraising message that Congress members have “access to sensitive information” that could lead to profitable trading, labeling this behavior as “unethical.”
During a recent town hall, Ocasio-Cortez expressed optimism about the momentum for the Congressional Restoration Trust Act, which aims to institute a trade ban.
It appears that the issue remains a contentious topic, with little political will from either party to make stock trading illegal for lawmakers, even as their trading often outpaces the broader market.
