Congress Versus The Market

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Good morning, investors. Both Republicans and Democrats are beating the S&P500 this year.

But copying what politicians buy usually doesn’t work.

Let’s take a look ↓

The U.S. Congress has 535 voting members.

And their stock trades are public.

But does buying what Congress buys actually work?

At first glance, it looks pretty effective.

So far in 2026:

But zoom out to the ETFs' 2023 inception, and it flips:

So does following Congress actually work?

Not exactly. And that’s where it gets funny.

And at the end of this article, you’ll also get my 3-Step System to Turn Congress Trades Into Stock Ideas ↓

A study of 311 Congressional portfolios found only 32.2% beat the S&P 500 in 2025.

That's why I wouldn't blindly copy individual trades.

What interests me more is clustering. Multiple members buying the same stock.

And over the past 60 days, these names attracted the most net activity:

Most bought: GS, BE, MSFT, BNS, FWONK

Most sold: BA, HD, T, CARR, PG

For me, Congressional trades aren't something to blindly copy.

They're a source of stock ideas.

And if you want to use them the same way, here's my approach.

3-Step System to Turn Congress Trades Into Stock Ideas ↓

Michael Proffe has spent 30+ years beating the market and identifying powerful market trends.

He turned €30,000 into €29 million with his trend-following strategy.

Now, he’s zeroed in on 3 stocks he believes could be major beneficiaries of AI’s next phase — and they’re probably not the names you’d expect.

Support my research by checking out today’s sponsor. ↑

President Trump made 1,152 trades in July alone. More than every member of the House and Senate combined.

I made one: I bought Uber. I made no other changes, and cash remains at 20%.

🤖 Anthropic’s IPO prospectus reveals a $42 billion net loss and warnings about AI risks. Definitely not on my buy list. (Yahoo Finance)

🐻 Michael Burry thinks the AI bubble could burst sooner than he expected. I agree it’s time to play defence, though he has called 11 of the past four crashes. (CNBC)

💻 Nvidia added $150 billion to its buyback plan. I’m curious to see whether they can deliver buybacks on that scale alongside its massive AI investments. (CNBC)

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