Investors, worried they can’t beat lawmakers in stock market, copy them instead

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A loose alliance of investors, analysts and advocates is trying to let Americans mimic the trades elected officials make — but only after they disclose them.

Members of Congress hear a lot of secrets: classified briefings, confidential previews of pending legislation and the private opinions of constituents, regulators, corporate executives and world leaders.lawmakers use that information to make money in the stock market.

But the rise of these platforms is an alarming sign of distrust constituents have for their elected representatives, said Delaney Marsco, the director of ethics at the Campaign Legal Center, a nonpartisan government watchdog group. According to Josephs, investors have so far routed some $130 million through Autopilot — $60 million of which has gone toward copying Pelosi, whose portfolio ranks as one of the app’s most popular, alongside Berkshire Hathaway’s Warren Buffett.

“While NANC’s run-up has been impressive, it’s statistically insignificant, meaning that there’s a decent chance that the outperformance to date has been random,” Kashner said. “Ditto for KRUZ’s underperformance.”The trackers have proved popular. But without quicker, more up-to-the-minute disclosures, investors won’t ever be able to perfectly copy lawmakers’ trades — and anti-corruption advocates will have a harder time pinning down whether a trade was problematic, James Kardatzke said.

“It’s already hard for many members to raise a family and maintain homes in two cities on their salaries,” a senior congressional aide explained of member opposition to a ban, speaking on the condition of anonymity to talk candidly. “If you make it impossible for a member’s spouse to take a job that includes stock-based compensation, that is another burden that can drive talented people away from public service.

Interest in the bill ebbs and flows “based on the bad or quizzical behavior of our colleagues,” Spanberger said. Johnson did not respond to a request for comment. “Mike understands that there’s a problem,” Roy said. “We’re just trying to work through on a bipartisan basis how we can address it.”Under current law, members rarely pay a real price for trading-related scandals.

In a hyperpartisan environment with threadbare majorities in both chambers, the members of the House Ethics Committee have little incentive to hold other members accountable. The Senate faces even less pressure to investigate its members: It lacks an independent ethics enforcement body like the Office of Congressional Ethics, which has jurisdiction only over the House.

Members of Congress might not clear the high legal bar for insider trading, which would require making a trade based on material, nonpublic information. But they might still trade on information that the rest of the public doesn’t have meaningful access to, said Marsco of the Campaign Legal Center.

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