When in doubt, choose the same stocks that the wives of lawmakers buy? This is what young investors do when it comes to deals made by House Speaker Nancy Pelosi’s husband Paul Pelosi, a businessman who owns a real estate and venture capital firm.
Although Nancy Pelosi herself does not trade in stocks, her husband does. And this is sufficient for some social traders, who see his trades as his own. “We have been following their performance and every stock that she has bought over the past two years has grown dramatically,” Christopher Josephs, co-founder of Iris, told Yahoo Finance Live. Iris is a social investing app allowing users to see the same stocks that friends, influencers, and professionals are buying.
Transactions made by lawmakers or their family members must be disclosed within 45 days of being executed.
“The reason President Pelosi became so popular is that every transaction she made inevitably turned out to be a long-term gain,” said Josephs.
“Although the overall market has risen significantly, these are very, very risky bets as she bought LEAP options rather than stocks,” Josephs added.
“It started in early 2020 with Crowdstrike (CRWD), then she bought Tesla (TSLA), and some laws were enacted for the electric vehicle market.”
“Then she bought Google (GOOG, GOOGL), then the laws came out that they weren’t going to tackle big tech. And then she recently bought Nvidia (NVDA).”
Joseph notes that each of the positions disclosed by lawmakers has increased by 20-30% since their initial investment.
President Pelosi’s office sent Yahoo Finance the following statement:
“The president owns no shares. As you can see in the required information, with which the president fully cooperates, these transactions are marked “SP” for the spouse. The president has no prior knowledge or subsequent involvement in any transaction. “
“We’re called stupid money, but we’re getting a lot, a lot smarter”
The scrutiny of the trades of lawmakers has increased since last year, when four senators or their spouses sold large amounts of shares around the time they received information about the severity of COVID-19. Soon after, a pandemic was declared and the stock market collapsed.
“It is not excluded to think that they [lawmakers] may necessarily know something that the retail investment community does not know. And if they’re the ones making the laws, it’s probably smart to follow along and see what they’re buying, “Josephs said.” It’s something we’ve made sure to keep an eye out for. “
He added: “The reality is that in retail investing, we are called stupid money, but we are getting a lot smarter with the way we invest.”
Ines is a stock market reporter for Yahoo Finance. Follow her on twitter @ines_ferre
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