Last month, it came to light that several US congressional leaders have been strategically investing in war-related stocks amid the ongoing conflict in the Middle East.
As geopolitical tensions continued to escalate, these lawmakers diversified their holdings into sectors such as defense, energy, and cybersecurity.
However, more recent revelations demonstrated that this trend has persisted, with additional Congress members following suit and purchasing stocks that could capitalize on the global unrest.
US Senator bought defense contractor Raytheon’s stock
Notably, Quiver Quantitative, an alternative data platform designed for retail investors, revealed on November 2 that Senator Markwayne Mullin has been also going in on war stocks.
To be more specific, Mullin, who sits on the Armed Services Committee, purchased shares of defense contractor Raytheon (NYSE: RTX) on October 3. In less than a month since the move, RTX jumped more than 17%.
The move was unveiled just weeks after Finbold reported that Congress members had been increasing their holdings into war stocks.
Most notably, many lawmakers have been purchasing General Dynamics (NYSE: GD), another defense company. This should not come as a surprise, given that defense stocks become particularly appealing during periods of geopolitical turmoil. A similar trend happened after Russia’s invasion of Ukraine last year.
Other specific stocks that attracted the attention of Congress include energy giants Exxon Mobil (NYSE: XOM), Devon Energy (NYSE: DVN), and Chevron (NYSE: CVX), as well as cybersecurity companies like Fortinet (NASDAQ: FTNT).
Trading bot that tracks politician stock purchases
As politicians’ and Congress’ moves in the stock market become particularly significant during turbulent times, Quiver Quantitative developed a trading bot that buys stocks purchased by influential lawmakers.
The trading bot, which was launched shortly after Russia invaded Ukraine, is up 20% since its debut, outperforming the broader market.
Some of the stocks the bot acquired include aerospace and defense giant Lockheed Martin (NYSE: LMT), Tesla (NASDAQ: TSLA), NGL Energy (NYSE: NGL), and Channeladvisor, which was later bought by CommerceHub.
The bot acquired these stocks after it was revealed that well-known US representatives and Congress members bought them.
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Source: https://finbold.com/is-congress-still-buying-up-war-stocks/