The Congressional Stock Trading Game
If you're interested in following how members of Congress invest their money, you've probably noticed that Reps. Marjorie Taylor Greene (R-Ga.) and Nancy Pelosi (D-Calif.) consistently generate buzz for their market-beating returns. But according to Jay Woods, Chief Market Strategist at Freedom Capital Markets, one of these lawmakers has a distinct advantage for investors trying to follow along: filing speed.
The two congresswomen have different investment styles, though their portfolios share some common holdings. Pelosi's disclosed trades tend to be substantial, sometimes involving stock options rather than straight equity purchases. The catch? Those trades are often reported weeks after execution.
"Marjorie Taylor Greene was great at stock trading as well," Woods told MarketDash. "In fact, she was even better to follow because she would file things on time."
Woods explained that Greene's filings arrive almost in real time, giving investors an immediate window into her moves and the ability to replicate them quickly. Meanwhile, Pelosi's delayed filing timeline means the opportunity may have already passed by the time retail investors catch wind of her trades.
"So yes, follow Nancy Pelosi, follow Marjorie Taylor Greene," Woods said.
The Insider Trading That Isn't
Woods suggested investors compare the track records of Congress members against major stock market indexes, and pay attention to whether lawmakers supported policies that benefited their portfolio holdings.
"It's not rocket science. They insider trade and it's not considered that because they're legally allowed to do it," he said.
Greene has previously stated that a portfolio manager handles all her trades. She brushed off criticism earlier this year after buying numerous stocks shortly before former President Trump announced a pause on tariffs, which sent stock prices soaring. Greene recently announced her future resignation from Congress, which would end her public trading disclosures. Pelosi has also announced she won't seek re-election in 2026, meaning she would leave Congress in January 2027.
Why This Drives Wall Street Crazy
The ability of Congress members to trade freely on information they access through their positions is a sore point for financial professionals who operate under strict regulations.
"I've been anti-Congress investing in stocks for years," Woods told MarketDash. "As someone in the industry who has very strict rules to adhere to, I have to disclose everything I do. I have a certain holding period."
Woods noted he must disclose all his trades and is prohibited from investing based on information gleaned from committee meetings where contracts are awarded.
"There's no way in hell I can invest in that," he said.
The market strategist argued that Congress members trading stocks based on information from their leadership positions or favorable rulings for specific companies should face the same restrictions he does.
"That's illegal in my world, but it's not in the congressional world. It's something that has driven me crazy since the beginning of time."
Don't Hold Your Breath For Change
Several members of Congress have voiced support for banning stock trading by elected officials, an idea that polls well with the public. But Woods isn't optimistic about reform actually happening.
"Why would they? They're making too much money to do so," he said.
While there's increased attention on a potential trading ban for lawmakers, Woods believes Congress members are unlikely to voluntarily give up such a lucrative advantage. Until they do, retail investors might as well pay attention to what they're buying and selling.