Rep. James Comer, a Republican congressman from Kentucky, is among the latest lawmakers taking advantage of recent market dips to buy big-name tech stocks. According to a filing made on January 10, Comer made several notable tech investments, including shares in Apple, Nvidia, Broadcom, Palo Alto Networks, Uber Technologies, Home Depot, PayPal, and Arista Networks, among others. These purchases, made on January 2, ranged from $1,001 to $15,000 per stock.
Comer’s timing seemed opportunistic, as tech stocks had taken a hit in December, marking the worst month since April for both the S&P 500 and the Nasdaq. However, with a surprise boost in January after a weaker-than-expected inflation report, the sector appears to be rebounding. Apple and Nvidia were among the standout choices for Comer, with both companies holding top positions as market leaders.
This move by Comer is not unique. Congressional traders have increasingly turned to big tech stocks, with Apple, Nvidia, and Microsoft frequently appearing in their portfolios. A financial report from Unusual Whales found that lawmakers outperformed the market in 2023, with Democratic lawmakers seeing a 31% return and Republicans gaining 26%, compared to the S&P 500’s 24.9% rise.
Much of this success comes from investments in tech, with the passage of legislation like President Joe Biden’s Chips Act potentially benefiting these companies. Lawmakers have also been actively advancing policies to support the tech sector, including measures related to TikTok and other tech-related issues.
Despite the strong performance, some lawmakers have been trimming their positions. The Capitol Trades platform recorded a significant number of stock transactions in 2023, with Apple, Microsoft, and JPMorgan Chase topping the buy and sell lists. While tech remained dominant, other sectors, such as semiconductors and banking, also saw notable trading activity.
However, not everyone is on board with lawmakers actively trading stocks. Public opinion is growing more critical, with bipartisan support for tighter restrictions on Congressional stock trading. A 2023 survey by the University of Maryland found overwhelming support for a ban on stock trading by members of Congress, the president, vice president, and Supreme Court justices. Critics argue that stock trading creates potential conflicts of interest, especially when lawmakers may have access to nonpublic information.
Although there are rules in place to limit insider trading—such as the 2012 Stock Act, which requires members of Congress to report their trades—critics argue that enforcement is weak, and violations are often met with light penalties. As a result, some lawmakers continue to trade freely.
In response, some lawmakers are pushing for further restrictions. On January 14, Representatives Dusty Johnson (R-SD), Chip Roy (R-TX), and Seth Magaziner (D-RI) reintroduced the Trust in Congress Act. This bipartisan proposal seeks to prevent members of Congress and their immediate families from trading individual stocks while in office, requiring them to place their investments in a qualified blind trust for the duration of their tenure.
Rep. Johnson emphasized the need for transparency, stating, “Most Americans agree that congressmen should be banned from buying stocks…We absolutely should not have the ability to use this information for personal gain.” The bill aims to address concerns about conflicts of interest and ensure that lawmakers serve the public’s interests, rather than benefiting from privileged financial knowledge.
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