Are U.S. politicians now copy-trading each other?

Trades made by members of the U.S. Congress have become both famous and controversial thanks to their frequently suspicious timing and generally stellar success, to the point that there is, by September 2024, a large number of strategies and trading bots aimed at tracking US Senator stock trades and copying their stock market actions.

The latest disclosure, filed on September 4 by Representative Marjorie Taylor Greene, revealed a possible new trend among American politicians – they may have started copying each other’s trades. 

Is MTG now copying Nancy Pelosi’s trades?

Within the report, there are multiple prominent stocks held by Congress’ best-known investor – the former Speaker of the House, Nancy Pelosi. Indeed, of the 14 purchases Greene has made, as many as six match Pelosi’s top holdings.

These include the shares of Nvidia (NASDAQ: NVDA), Alphabet (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), Tesla (NASDAQ: TSLA), Palo Alto Networks (NASDAQ: PANW), and CrowdStrike (NASDAQ: CRWD).

Still, unlike the Democrat’s trades, which tended to be in the $1 to $5 million range each, all of the 14 purchases made by MTG are somewhere between $1,000 and $15,000. This means that, despite the apparent size of the September investment, Greene might have spent as little as $14,000 and no more than $210,000.

It is also interesting that, despite Pelosi’s reputation, many of the stocks also traded by the Republican Representative have not been among the former Speaker’s best trades. 

For example, Pelosi is estimated to have lost some 15.58% on her latest NVDA stock purchase – though she is, nonetheless, still significantly in the green on her entire position in the semiconductor giant – and 17.27% on her initial PANW buy.

Marjorie Taylor Green among 2024’s least successful Congressional traders

Given Marjorie Taylor Greene’s recent stock market fortunes, investing in the biggest Pelosi stocks may have been the right call for the Republican. 

On August 13, MTG was reported as being down 80% on her 2021 Trump Media (NASDAQ: DJT) investment, and on August 26, she was estimated as having lost nearly 8% on her Advanced Micro Devices (NASDAQ: AMD) position.

However, the saving grace of both trades may be their relatively small size. With the DJT investment reported as being no larger than $50,000, the losses are likely far from a cause for bankruptcy, and Greene could have lost as little as $80 on the AMD bet.

Finally, whether Greene’s latest trades were inspired by her colleague or not, they could quickly generate significant returns, given they were made on September 3 – the day the stock market dropped so much that it erased more than $1 trillion within a single session – as long as they were made near the day’s lows.

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