Conservative comedian Alex Strenger was escorted away after he asked Democratic Congresswoman Nancy Pelosi which stock to buy as she signed copies of her new book, "The Art of Power," at the Texas Tribune Festival in Austin on September 8. Strenger posed as a Democrat, wearing a face mask and a Bernie Sanders baseball cap, before approaching and heckling Pelosi over her stock trading activities.
Strenger reportedly identified himself as "Noah" before telling Pelosi how much he appreciated her "fierce, staunch defending of democracy" while expressing his fear of Donald Trump winning elections. He continued that Trump should be imprisoned to save democracy and that "we just have to win the election," to which Pelosi concurred by saying that "we do." However, Strenger suddenly started asking for stock-buying tips from the former House Speaker while describing her as the "greatest options trader" ever.
As security personnel were preparing to escort Strenger away, he added that "the police are an instrumental institution of white supremacy and racism" while opining that "they should be defunded." He didn't stop there. The comedian highlighted that Pelosi "makes six figures a year in Congress and has a hundred million dollar net worth" and asked the crowd if they didn't want to know what "stocks she should buy." As he was being escorted, Strenger said: "I just want to know what stocks to buy. I want to close the wealth gap. What's the problem? I just want to close the wealth gap."
Nancy Pelosi Continues to Face Criticism For Alleged Insider Trading
Nancy Pelosi's stock portfolio is popular among investors who monitor congressional trades. Her portfolio with top holdings like Apple, Amazon, Nvidia, Tesla, and Meta, among other blue-chip stocks, has estimatedly returned over 720% since May 2014. Last year, her portfolio value reportedly jumped by a whopping 65%. Nancy Pelosi is married to Paul Pelosi, the founder of a venture capitalist firm. The couple has faced growing criticism for allegedly placing trades based on insider information, given Paul's trading experience and Nancy's position as an influential legislator, which gives her access to information that could impact markets. Pelosi reportedly exercised Microsoft call options in June 2021 before the tech giant was awarded a US defence contract. It was followed by purchasing Nvidia call options in 2022 when Congress voted on the CHIPS Act to offer government subsidies to the semiconductor industry. Similar trades in 2023, like buying Nvidia call options with a $120 strike price, garnered attention because the move came way before the AI hardware giant announced its recently completed 10-for-1 stock split. In early July, Pelosi disclosed buying 10,000 Nvidia Shares and Broadcom call options with a $800 strike price for June 2025 expiry. The Broadcom trade, executed at June-end, was just before the company finished a 10-for-1 stock split.
Moreover, the latest trades were disclosed right after bipartisan senators moved a new ETHICS Act bill, which, if passed, will ban Congress members from trading stocks with enormous fines for violations. Nancy Pelosi had long refuted the idea that her husband trades based on the information she provides. She also opposed new trade ban laws until 2022, when she finally supported legislation banning Congressional trades.
Should You Copy Congressional Trades?
Copying Nancy Pelosi's stock trades over the past decade would have resulted in triple-digit returns, but the problem is that Congress members don't have to report the trades immediately. Under the 2012 STOCK Act, Congress members can report a trade within 45 days of execution, with a provision for a further 90-day extension. Hence, there is generally a lag between when the trades are executed and the date of their disclosure to the public.
While websites like Unusual Whales simplify tracking Congressional trades, these platforms need to account for the reporting lag. However, alternate data platforms like the Quiver Quantitative Platform address the gap between trade disclosures and executions by developing backtested strategies based on when the trades become public information. Meanwhile, Congress members often invest in overvalued stocks and instruments like options and futures, which can be risky for the average investor. Hence, hiring a financial adviser rather than mindlessly copying trades can help reduce portfolio volatility when tracking Congressional trades by keeping risky products like derivatives out of the picture.
Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.
