Congressional Democrats' 2023 stock returns outperformed the S&P 500 by 7 percentage points, with many members trading stocks based on information not available to the public, according to a report released Tuesday by Unusual Whales. There are growing concerns that this may occur.
Winning against S&P is extremely difficult For stock traders, the challenge is to identify stocks that regularly outperform the S&P.
- The S&P 500 is a stock index that tracks the stock price performance of the 500 largest companies listed on U.S. stock exchanges.
- S&P provides diversified exposure and reduces portfolio risk.
- The composition of the S&P 500 incorporates factors of size, value, quality, and volatility
“Democrats came out on top by a wide margin, thanks to their tech portfolios. Republicans' returns were only about 18%, but still impressive,” the report said. found. “Their portfolios are primarily in financials, oil and commodities, so overall they underperformed. It's been a difficult year with bank failures and high interest rates.”
- Unusual Whales shows the Democratic Party is up 7 points (31%).
- The Republicans fell short of the S&P by 6 points (up 18%).
This report calculated the returns of the members whose portfolios performed best. Among them are Rep. Nancy Pelosi (D-Calif.), Sen. Susan Collins (R-Maine), Rep. Dan Goldman (D-New York), and Rep. Dan Crenshaw (R-Calif.). -Texas), including Sen. Mitch McConnell (R-Texas). -KY).
The top member was Congressman Brian Higgins (D-N.Y.), who represents the Buffalo area.he was the first elected In 2005, he served on the House Budget and Ways and Means Committees.
Overall, the report revealed an overall decline in transactions in 2023, although transaction values were similar to 2022.
The next two graphs show that Congress has sold more shares than it has bought over the past two years. Additionally, in 2023, more government bonds (Treasury bills, bonds, banknotes, etc.) were sold than in previous years. They had been buying more corporate debt (bonds and bonds) over the past two years.
In general, Congress is trading fewer stocks (compared to last year, the two parties traded about $150 million). Trading activity in other assets increased.
The report showed that stock trading among members of Congress decreased as they sold more stocks than bought them. “Senate Republicans were relatively busy selling more stocks and buying more stocks than Senate Democrats,” the report said.
Learn more about Congressional stock trading starting in 2022.
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