“Well, if you could cheat for $84, you could cheat for $800.” – Green Acres
I had a scam caller the other day threatening to put me in jail for tax fraud. Heck, I don’t even pay taxes.
First, I’m not a financial advisor, so please consider this commentary by an Internet humorist entertainment – you shouldn’t trust me since I lost $75 betting that Oprah would eat weight watchers in 2008. Not the food from the company Weight Watchers®, but actual people who were watching their weight.
I’m willing to bet that the people who give tips to sitting Congressmen aren’t, financial advisors, either. They’re insiders. Sure, a law was passed in 2012 that was supposed to ban insider trading. But Senator Richard Burr of North Carolina dumped $1.7 million in travel stocks (in 33 transactions) on February 13, 2020.
I like Mongolian poetry, but it has prose and Khans.
You know, in February. When he was getting classified Corona briefings where the CIA admitted that they’d have to overthrow the United States government instead of the Russians because of the planned travel restrictions.
But Senator Burr got those briefings before travel stocks tanked.
If it was me who sold that stock right then, you can be sure that the Feds would wonder where I got the psychic ability to make trades. After all, the Feds put Martha Stewart in the slam after they investigated her for insider trading. (Yes, I know that Martha went down for lying to the Feds and not insider trading, but that just generally results in an additional term in Congress for most people.)
But not Senator Burr. Nope. The FBI investigated him, and the Department of Justice concluded that what he did was just awesome sauce, and awarded him six more terms in the Senate.
I met a baker that was a natural at stock trading – buy dough, sell pie.
The financial performance of sitting Congressvermin is amazing:
- Representative Collin Peterson, Minnesota, started in 2008 with $123,500. In April of 2020? He was worth $4.2 million.
- Representative Judy Chu, California, was worth less than $100,000 in 2008. By April of 2020? She was worth $7.1 million.
- Senator Roy Blunt, Missouri, went from $602,000 to $7.1 million in the same time span.
How did these people do that?
I’m sure it was careful investing and not at all sweetheart deals that aren’t available only to powerful members of Congress. I mean, it makes sense that Barack Obama entered the White House worth $1.3 million and today is worth somewhere between $70 million and $140 million.
Biden is busy in the White House – he spends most of the day watering his hair.
Where did he make that money? Books. Public speaking fees. Netflix® opening up a truck and shoveling money down his mouth. Certainly, none of this sounds like a payoff, does it?
But every Senator and Representative can’t be shoveled money like that. I’m betting that in many cases, the payoff is just a tip here and a tip there. That’s not protected, but remember that Congressparasites can just decide to not pay their taxes and not suffer any significant consequences.
There is, however, an idea that I’m thinking of doing. I haven’t done it yet, but at some point (maybe next week?) I was going to start checking out trading ideas from here (LINK) or here (LINK).
They had to bribe my brother to be good when he was a kid. Me? I was good for nothing.
Yup. People are now making it easy to track the trades of the people getting paid off in Congress. Are all of the trades going to be winners? Of course not. But the stock purchases by Congressrats outperform the market by between 6% and 10% per year.
Maybe the Congressswine are just picking stocks that are already doing well and jumping on the bandwagon?
No.
The stocks that senators bought had zero abnormal performance before the senators bought them. After a year? Those same stocks had abnormal positive returns of 25%. This is a rock star level of performance – put any of these people at a hedge fund and they’d be billionaires in less than a decade.
This is not chance.
They’re cheating.
Does it matter how they’re cheating?
When Warren stopped running for president, it was the second race she left that year.
Probably not. As long as they consistently do it, though, who cares? There does seem to be a skew to it – Senators in their first term seem to do the very best. Perhaps that’s when they take the ticket and sell out their principles for high returns so they can be blackmailed later?
Nah. That’s silly, right?
Regardless, although you and I can’t get book deals and have people sell us real estate for ludicrously low prices, I’m going to check to see if I can’t cheat like the pros.