NEW YORK, Jan. 9 (Xinhua) -- The stock portfolios of more than two dozen U.S. lawmakers from both parties outperformed the benchmark S&P 500 in 2024, an annual report released Tuesday by the trading trackers at Unusual Whales showed.
From Dec. 29, 2023, to Dec. 30, 2024, the portfolio value for all trading Democrats was up 31 percent and Republicans up 26 percent, according to the report. In comparison, the benchmark S&P 500 posted an annual gain of 23.3 percent.
"The Dems generally won this year due to their big tech holdings, whereas Republicans held (for the most part) financials and commodities," the report said.
According to the report, former House Speaker Nancy Pelosi's portfolio, managed by her husband, was up 70.9 percent, tripling the S&P 500's annual return. Moreover, Pelosi's 2024 rate of return was more than double that of legendary investor Warren Buffett's Berkshire Hathaway, which saw a 27.1-percent annual return. It also exceeded her 65.5 percent gain in 2023.
"Pelosi has faced significant blowback for her opposition to bipartisan stock trading bans as she consistently reports above-average stock gains," The Hill reported. "Pelosi has previously defended congressional stock trading, saying members should be able to participate in a 'free market economy.'"
According to the report, nine other lawmakers outperformed Pelosi last year, with Republican David Rouzer from North Carolina posting the largest gain of 149 percent. However, his great return this year was mainly due to Nvidia shares he purchased years ago, and he is "not an active trader."
"The idea of lawmakers trading stocks while legislating is inherently problematic. Congress members shape policies that can directly impact markets. Whether or not they act on insider knowledge, the appearance of potential abuse undermines public trust," the report said.
Members of Congress have been barred from trading on information they learn in their official capacity and required to file frequent financial disclosures for more than a decade under the Stop Trading on Congressional Knowledge Act (STOCK Act) in 2012. But lawmakers can still trade on the public stock market, and reporting delays and nonexistent enforcement actions have raised questions about these guardrails, The Hill reported.
No member of Congress has ever been charged for violating the act, it added.
"Now fast forward to 2024 and 2025, and Congress still hasn't implemented a stock trading ban. Instead, the public relies on financial disclosures to hold lawmakers accountable. Most of the time, fines are not implemented and no change is made," the report said. ■