Republican Congress Members and Insiders are Buying These 10 Stocks
American politicians have long been known for their stock-picking prowess, with their portfolios consistently outperforming the market. A 2011 study titled “Abnormal Returns From the Common Stock Investments of Members of the U.S. House of Representatives” shed light on this phenomenon, showing that US Congress members’ stock picks often yield “statistically significant positive abnormal returns” due to their “substantial information advantage.”
The study analyzed stock trades of House Members from 1985 through 2001, revealing that a portfolio imitating US House Members’ common stock purchases outperformed the market by 55 basis points per month. Furthermore, the number of representatives trading stocks has increased over the years, from 41 traders in 1985 to 91 traders in 2001.
Interestingly, the study also compared the stock-picking performance of Democrats and Republicans, finding that Democrats tend to outperform Republicans. The research attributed this to Democrats’ control of the House for a significant portion of the study period, giving them more experience and influence in the market.
One way to track the stock picks of Republican Congress members and insiders is through the Subversive Unusual Whales Republican ETF (KRUZ), which invests in stocks bought or sold by Republican members of Congress and their spouses. From this ETF, 10 stocks have emerged as popular picks, including Dollar Tree Inc, Charter Communications Inc, Wells Fargo & Co, FedEx Corp, and AT&T Inc.
Insider buying activity from corporate insiders like executives, directors, and officers further supports the appeal of these stocks. For investors looking to capitalize on the stock picks of Republican Congress members and insiders, these 10 stocks present intriguing opportunities for potential growth and returns.