Most of the stock market is getting crushed, but defense stocks are rising.

We have reported on several purchases of these stocks by politicians over the last year.

Some of them even sit on the committees that oversee defense spending.

Here’s a short thread: Representative Kevin Hern has been buying Lockheed Martin and Raytheon stock:

We just saw ANOTHER politician buy stock in the defense contractor Raytheon.

Raytheon produces components for the Tamir intercepting missile used by Israel’s Iron Dome.

Here’s a thread of politicians who we have seen buying stock in Raytheon recently: On October 13th, we published a report on a purchase of Raytheon stock by Senator Markwayne Mullin.

This trade stood out to us, because Mullin sits on the Senate Armed Services Committee.

The stock has now risen 41% since his purchase.

We just received data on another politician buying defense stocks.

We have been reporting on politicians buying up defense stocks since this summer.

Many of them sit on committees that oversee defense.

Here's a thread of some of the trades we have seen: May 5th: Representative Michael McCaul buys Oshkosh Stock

New poll showing bipartisan agreement on corruption.

The media rarely covers suspicious congressional stock trades when we report on them.

Here's a thread of a few of our recent reports.

These trades were absurd, but there was hardly any outside attention towards them: In November, I posted a report on a suspicious trade I noticed from Senator Tina Smith.

She bought up to $250K of stock in a company called Tactile Systems.

The stock has now risen over 30% since then.

It’s a medical devices company. Senator Smith is on the Senate Committee on Health.

It’s based in Minnesota. Senator Smith represents Minnesota.

U.S. Representative Daniel Crenshaw has made just 33 stock trades since entering office.

However, they include some of the most well-timed congressional trades we’ve seen.

Here are his top five most profitable transactions: Crenshaw purchased the Direction Daily Financial Bull 3X Shares ETF, $FAS, at almost exactly the lowest point of the COVID market crash.

The graph below doesn’t do this trade justice.

It doesn't show that he sold near the peak on 1/10/22 for a return of over 500%.

I've been building bots that trade stock like different politicians.

The portfolio holdings and performance are tracked live on my site.

The Nancy Pelosi Strategy is up 50% this year, but that's not even the top performer.

Here's a short thread:

The Dan Meuser Strategy has been the top performer this year.

We estimate that mimicking trades made by Representative Meuser resulted in a return of over 90%.

We built an algorithmic trading strategy that mimics trading by U.S. politicians.

It has beaten the market by over 14% so far this quarter.

Since the strategy went live last year, it has beaten the market by 34%.

Here's a thread of its current largest holdings: 32% of the portfolio is in NGL Energy, $NGL.

Representative Mark Green bought up to $250K of $NGL on March 24th.

$NGL is up 58% since.

U.S. Representative Daniel Crenshaw has only made 33 stock trades since entering office.

They include some of the most well-timed congressional trades we’ve ever seen.

Here are his top five most profitable transactions: Crenshaw purchased the Direction Daily Financial Bull 3X Shares ETF, $FAS, at almost exactly the lowest point of the COVID market crash.

The graph below doesn’t do this trade justice.

It doesn't show that he sold near the peak on 1/10/22 for a return of over 500%.

Yesterday, we posted this wild clip of Congressman Daniel Meuser arguing that the government isn’t doing enough to serve banks.

Today, we’re posting a look into his personal financial ties to the banking sector. 👇 First, a look at campaign contributions.

Goldman Sachs was the 5th largest donor to Meuser’s 2022 campaign committee.

The American Banking Association was the 9th largest donor.

U.S. Representative Josh Gottheimer has traded up to $43M of stock and options in the last year.

He sits on the House Subcommittee on Investor Protection.

Here are his top five most well-timed stock purchases so far in 2023: Gottheimer purchased Nvidia stock, $NVDA, on March 6th.

The stock has risen 89% since.

As the bank crisis unfolded this week - many bank executives took the opportunity to buy up stock in their own company at a discount.

Below is a thread showing examples of this trading 👇 The CEO of Metropolitan Bank ( $MCB ) bought ~$500K of stock in his company yesterday.

The stock is up over 140% from its lowest point yesterday.

Before this week’s meltdown of Silicon Valley Bank, at least 8 members of Congress had already sold bank stocks in 2023, amounting to over $1M in total sales.

Here are some of the most significant trades that we saw following this trend at the start of the year 👇 Senator Thomas Carper sold his whole position in the SPDR S&P Bank ETF ( $KBE ) on March 1st.

Carper sits on the Senate Committee on Finance.

This year in Q3 we tracked more than 40,000 insider stock transactions through scraping SEC Form-4s.

Here are a few stocks which had particularly strong insider buying activity last quarter... $MEDP - Medpace Holdings, Inc

More than $150 million (~3% of the market cap) in net insider purchases throughout September with the stock trading in the $140-160$ range.

After a strong Q3 earnings report late last month, shares have risen to around $215 today.

There has been no new regulation on congressional trading in almost a decade, despite strong bipartisan support.

To better understand this disconnect, we went to DC and spoke with 3 people who have played key roles in legislative efforts on the issue.

Here's what we learned: The last significant legislation on congressional stock trading was the 2012 STOCK Act.

This legislation was passed due to a public outcry after a 60 Minutes Report revealed suspicious trading prior to the 2008 Financial Crisis.