Following his impressive 25-hour toilet break record, Cory Booker is now “demanding” a probe into allegations of insider trading inside the Trump administration.
According to Booker, Trump or someone in the White House probably traded on the news, illegally benefiting from the markets’ huge changes, when the president promised a relief from the enforcement of harsh tariffs, which sent stocks skyrocketing by historic levels.
Booker, who is quickly becoming the P. T. Barnum of Democratic politics, is looking for showstoppers regardless of the facts, even if he has zero evidence that anyone in Trump’s staff purchased stocks before the major announcement.
Booker first sidestepped the topic on Meet the Press, an NBC News program, before declaring, “There is enough of an offense here, there’s enough smoke here that should demand congressional hearings.” This was in response to a question about whether Democrats have proof of corrupt behavior. In other words, no.
We must admit that Booker and his Democratic colleagues were enraged by the market boom that followed the brief tariff break. Market declines bolstered their fear campaign, in which they and their media friends warned that Trump’s trade policies would destroy the American economy. The attempts of Trump to make international trade more advantageous to American companies might damage the dollar’s position as the world’s reserve currency, according to Senate Minority Leader Chuck Schumer et al., who have also threatened to put us into recession.
Democrats are more worried that Trump could succeed than that he will fail.
Booker broke a record set by a fellow Democrat for the longest-ever senate filibuster, which brought him current attention. In 1957, South Carolina senator Strom Thurmond spent more than 24 hours on the Senate floor fighting to stop the Civil Rights Act from passing; Booker outdid Thurmond by denouncing not a measure but everything related to President Trump. It wasn’t very impressive, but he got a lot of attention, which is perhaps the most important thing for a Democratic candidate hoping to become his party’s presidential nominee. The next act is next on his agenda.
Several House Democrats, spearheaded by Maxine Waters, penned a letter to Paul Atkins, chair of the SEC, and other authorities, reiterating the need for probes into insider trading, even if there is no proof of wrongdoing. A word of caution to Democrats: be wary of your desires. It would be extremely embarrassing for Booker’s party if House Republicans launched an inquiry into trading on non-public information.
Nancy Pelosi, the former House Majority Leader, has an apparent talent for beating markets, and many have questioned her apparent trading ability for years. In comparison to other hedge funds, the Nancy Pelosi “stock tracker” had the best performance last year, increasing 54% (as reported by trading platform Autopilot), while Light Year Capital had the best performance, increasing 59%. Remarkably, Pelosi’s achievement outperformed the Inverse Cramer Stock Tracker, which aimed to do the inverse of Jim Cramer’s stock recommendations on CNBC and had a 43% gain in 2024.
The STOCK Act, which was implemented in 2012, mandated that politicians record stock or bond trades within 30 to 45 days if the value exceeded $1,000. As a result, we can observe Pelosi’s and other lawmakers’ trading activities. The public can participate by purchasing exchange-traded funds (ETFs) developed by companies like Unusual Whales when politicians disclose their investment selections. An exchange-traded fund (ETF) with the symbol KRUZ would be good for those who favor the Republican strategy, while NANC would be good for those who appreciate what Democrats purchase (or are certain they have “special knowledge”).
There have been requests to look at lawmakers’ investment decisions for a long time. Nancy Pelosi has been the target of intense criticism due to her astronomical net worth—an estimated $250 million—and that of her venture capitalist husband, Paul. Not only should her stock trades be investigated, but her portfolio activity has also involved options trading, which is suspicious. Hedging is only one of many reasons why people engage in short-term stock put and call trading. For those looking to make a lasting investment, they are not the best option. Those who trade based on breaking news or who anticipate that events occurring in the near future might affect stock prices are better suited to these vehicles.
Investopedia states, for instance, that “Pelosi bought 50 Nvidia stock call options with a strike price of $120, valued at between $1 million and $5 million, with an expiration date of Dec. 20, 2024.” This information was gathered in November 2023. Her punctuality was faultless. The stock price of Nvidia was $40 at the start of November; six months later, it reached $90, thanks to the important AI initiatives that came out of the Joe Biden White House. Its price hovered about $140 a year later.
Lawmakers are still able to profit from insider knowledge, even after the STOCK Act was established by Congress. However, the same insider trading regulations that apply to the general public also apply to politicians. To be balanced, allegations of illicit trading have been leveled against both Republicans and Democrats.
A number of people have been advocating for lawmakers to be banned from trading stocks in the past few years. Those calls have, unsurprisingly, not been returned. Large bank employees are not allowed to trade stocks due of their access to non-public information. Similarly, lawmakers frequently enact laws that have the potential to affect the future performance of businesses.
“How much trust and confidence do you have at this time in the legislative branch?” was the question posed in the most current Gallup survey on the matter. The percentage that said “a great deal” was 4%, while 30% said “a fair amount.” It it be wise to outlaw stock trading.
Meanwhile, before diving into a comprehensive study of stock trading by elected officials, Cory Booker could benefit by polling his colleagues. And instead of trying to make headlines, he should focus on issues that benefit his constituency.
