Source: official account: Xiake island wechat id:xiake_ island
It is said that there is a legend in the U.S. investment community that Pelosi has to win over Buffett.
Pelosi’s portfolio outperforms the S & P 500 (source: New York Post)
Which Pelosi? The speaker of the United States Congress and a politician who planned to visit Taiwan. However, this trip was either stranded due to the “strategic rejuvenation” or failed due to the deterrence of the people’s Liberation Army.
If you can’t come to Taiwan, China’s Treasure Island, Pelosi doesn’t have to be angry. It’s comforting to see her husband Paul. In 2021, Paul Pelosi’s return on investment in the stock market was as high as 56%, you know, financial tycoon Buffett was only 26%. According to this posture, there is no need to have lunch with Buffett in the future. Wouldn’t it be more delicious to have lunch with Paul?
Paul Pelosi’s trading skill is as fierce as a tiger. He can count the money lying down.
Last January, before the Biden government announced subsidies for electric vehicles, Paul suddenly bought $1 million worth of Tesla shares. In March of the same year, Paul took a heavy position in Microsoft’s stock at a low price. It was soon reported that Microsoft received a US $22billion order for AR combat helmets from the US Department of defense, and the company’s share price soared. In July of the same year, a number of large technology companies in the United States were investigated by antitrust, and the market was like a frightened bird. At this time, Paul was “reverse” long Google. Sure enough, Google was safe and its share price soared by 20%.
Anyone who reads this investment performance must admire Paul for his “understanding of policy”.
Why does Paul know so well? It’s not because he has the help of a virtuous wife that insider information is enough. “Pelosi can obtain confidential information, and she has the right to influence the fate of her husband’s investment and trading company through words or actions,” the Capitol Hill said The real God of love is Pelosi, and Paul is nothing more than her white gloves.
The suspicious windfall of Wall Street stimulated the two parties to call for a ban on stock trading. “
(source: Capitol Hill)
However, for her husband’s brilliant achievements, the statement of Pelosi’s office is that the speaker himself does not participate in stock trading, and he knows nothing about the trading before the trading information is made public.
Even so, the market has made a choice with its feet. A retail organization called wallstreetbets simply named the product that applied Paul’s portfolio “insider portfolio”. The founder of the organization satirized Pelosi to the media: “Capitol Hill has gathered the best investment minds of our generation. We should invest like a congressman.”
However, most Americans do not appreciate the “investment vane on Capitol Hill”. According to CNBC, a poll shows that nearly 80% of the people believe that lawmakers and their spouses have an “unfair advantage” in the stock market.
American people are dissatisfied with the “unfair advantage” of senators’ stock speculation (source: CNBC)
It is not new in the United States for members of Congress and their relatives to speculate in stocks.
In 2012, the United States promulgated the “stop using congressional information trading act” (hereinafter referred to as the “Stock Act”), which stipulates that members of Congress must not use the non-public information obtained by their positions to trade stocks for personal gain, and members must continue to submit their own and their family’s stock trading records to the house of Representatives on a regular basis.
However, the investigation exposed by the US business insider website showed that 66 members of Congress and 182 congressional aides in this Congress openly violated the provisions of the stock act. This congressman and his immediate family members traded stocks and financial assets worth $631million in 2021, bought $267million and sold $364million; 60% of the transactions are stocks, and the rest are funds, bonds and other assets.
66 members of Congress and 182 congressional staff openly violated the provisions of the stock act. Source: business insider website
Although the investment amount is huge, it is difficult to accuse Congressmen of “insider trading” according to the disclosure of Fortune magazine——
Many U.S. senators, including Georgia Republican Senator Kelly royfler, California Democratic Senator Diane Feinstein, and Oklahoma Republican Senator Jim Inhofe, are suspected of using insider information to conduct stock trading. The U.S. Department of justice launched an investigation into them, and ultimately did not file a lawsuit.
Republican senators Richard burr and Kelly Loffler are suspected of insider trading. After receiving the warning at the briefing, the two sold their stocks and avoided risks. After several rounds of investigation, they also did not receive any complaints.
The congressman himself has been able to exonerate himself from his responsibility for stock trading, and their families are even more secure by relying on insider information to make profits.
Diao Daming, a researcher at the national development and Strategy Institute of Renmin University of China, told me that according to the current relevant laws of the United States, members of Congress themselves cannot conduct financial transactions based on internal information obtained due to their duties, but this provision does not include members’ families and other relatives.
Within the United States Congress, there have been calls for banning members and their relatives from stock speculation.
On January 12 this year, U.S. senators Jon osov and mark Kelly jointly proposed the “Stock Exchange Prohibition Act of Congress”. The bill prohibits members of Congress and their spouses and children from trading shares during their term of office. For existing stock investment transactions, the bill requires all current members and their spouses and children to transfer their shares into a confidential trust within 120 days of the implementation of the bill. The new congressman will transfer his shares and those of his family into a confidential trust within 120 days of taking office. Only after 180 days after the member leaves office can the funds transferred into the confidential trust be transferred out or realized. If a member violates the foregoing provisions, a fine equivalent to the full salary of the member will be imposed.
“Members of Congress have special authority to obtain confidential information and formulate federal policies. They should not participate in the stock market at the same time, and must end corrupt insider trading,” osov said
Republican Senator joshholly put it more bluntly: “year after year, politicians have somehow won the market, buying and selling millions of shares of companies they should have supervised.” “Wall Street and large technology companies cooperate with elected officials to get rich at the expense of national interests. It’s time to face up to Washington’s profiteering!”
However, the progress of legislation is not optimistic. As the “top leader” of the house of Representatives, Pelosi insisted that members of Congress have the right to speculate in stocks because “the United States is a free market economy”. At the beginning of this year, under the pressure of public opinion, Pelosi finally acquiesced in drafting a bill to restrict parliamentarians’ stock speculation. But after all, reluctantly, Pelosi recited the “procrastination formula” – so far, such proposals have remained in the deliberation stage, and no bill has been voted on.
Slow progress in approving the bill (source: Official Website of the United States Congress)
It is also clear that it is tantamount to conspiring with a tiger to let these self stealing congressmen pass legislation, strengthen supervision and solve their own insider trading problems.
With his wife’s escort, Paul Pelosi is bolder and continues his “investment myth”. The New York Post reported on July 16 that just before Congress voted on the chip manufacturing subsidy bill, Paul madly bought millions of dollars of shares of American chip company NVIDIA a few weeks in advance, reaping profits.
When it comes to investment, Gordon gekker in the movie “Wall Street” said, “the most valuable commodity I know is information.” For Paul Pelosi, the most valuable thing is to find the right “partner”.
Wen / Yun Ge
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