For Members of Congress, It’s All About the Money

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. For Members of Congress, It’s All About the Money By Nomi Prins, Editor, Inside Wall Street with Nomi Prins It takes big bucks to win a seat in Congress. During the 2022 midterm elections, candidates and political action committees spent nearly $17 billion on state and federal campaigns. That marks them as the most expensive midterms ever. Having money flow into Congress is one thing. But giving legislators time to snuggle into a seat of power is a whole different story… because it’s when they grab real opportunities to grow their wealth. As I said in [last week’s essay on term limits]( political power is all about the money: … congressional incumbents stay in power due to the money and corporations backing them… and if you keep your eyes on where this money is originating from, you can have a pretty good idea of which companies will be the government’s winners this year. So this week, I will peer behind the closed doors of the House and Senate.… and explore the phenomenon of congressional trading, and what it means for you and your money. Recommended Link [Stunning “Financial Street Magic” could change the way Americans shop forever]( [image]( Financial genius reveals how to buy all the stuff you want – without paying for them the usual way. [Click here for LIVE demonstration. (It takes 3 seconds!)]( -- It’s Not Just a Pelosi Problem Representative Nancy Pelosi is the poster child for congressional trading. She’s the third-wealthiest member of Congress. Last year, Pelosi and her financial whiz of a husband, Paul Pelosi, executed 31 trades. That’s up from 19 trades in the year prior. It’s safe to say Pelosi has a strong personal interest in what happens to the prices of shares she owns – and how that impacts her family’s portfolio. And it’s for this reason that many people compare her to a market whale, capable of moving entire markets. According to public opinion, she is someone to always watch. [Featured: “What I’ve learned is going to shock most people...” – Nomi Prins]( But, in 2021, Pelosi didn't even make the list of the top five trading members of Congress. She was No. 6 (which is still impressive), but that’s not quite the top five. And in 2022, she didn't even make the list of the top 10. That’s why I find the whole Pelosi discussion distracting. It diverts our attention from the real problem: that there’s a bigger, more systemic issue at hand. Recommended Link [Bear or bull market, this highly successful trader has shocking new forecast]( [image]( Nobody believed Larry Benedict’s prediction in February 2020. The DOW plunged 3.5%, and he told CNBC, “It seems like there’s much more to come.” Within a month, the market plummeted 34%. Then, nobody believed Larry at the start of last year, either. He predicted that “all the indexes will be negative for the year,” with the Nasdaq leading the way. Once again, he was spot-on. Anybody who followed his recommendations could be well in the black. Now, for the first time, Larry’s coming forward to share a brand-new forecast. [Click here to watch his interview right now.]( -- Our Government Is Broken If you’re like most folks, you might wonder how it’s possible that a member of Congress who makes $223,500 per year is also worth over $171 million. Well, that’s the story of Nancy Pelosi’s 35-year career in Congress. But it’s also a symptom of a much bigger issue, which is that our government is broken. One hundred and eighty-three members of Congress reported making at least one trade between 2019 and 2021. Of these 183 members, more than half of them sat on congressional committees that would’ve provided them access to insider information. But there’s more. As of late, this whole situation has been spiraling out of control. In 2022, members of Congress traded nearly $400 million worth of stocks. As you can see from the chart below, that was significantly higher (25%) than what they traded in 2021. [Chart] That’s despite the 40-year high inflation, interest rate hikes, a bear market, and increased public interest in congressional stock trading. Instead, you can see congresspeople diversified away from riskier assets into government debt and safe securities. Now, the number of congresspeople that filed financial disclosures in 2022 was down to 131 compared to 147 in 2021. This means that there were fewer officials trading last year. But it also means that a smaller group of people traded a significantly larger number of stocks. In fact, this amounts to about $3 million worth of shares traded per member, versus $2.16 million in the year prior. That’s quite impressive when you consider that, unlike the prior year, 2022 was a terrible year for the stock market. In fact, it was its worst year since 2008, with many stocks trading near their multi-year lows. [Featured: Make 2023 all about investing for your retirement]( Plus, the 131 number translates to just under a quarter (24%) of Congress. That’s a lot of people sitting in seats of power… making laws that directly impact certain companies they or their family members might have investments in. And it gets worse… Insider and several other news organizations identified 78 members of Congress who've recently failed to properly report their financial trades. This means that many members of Congress do not comply with the law (which doesn’t bar them from trading securities, mind you). It’s that simple. This specific law is called the STOCK Act, and its purpose is to combat insider trading in Congress. It’s also supposed to make elected officials more transparent about their personal financial dealings. Even so, various members of Congress who violate the STOCK Act get off with a slap on the wrist, in the form of a $200 fine. Despite the small penalty, some members don’t actually end up making the payment. To top it off, no public records exist yet to indicate whether lawmakers have actually paid the fines. These two factors only touch the tip of the iceberg as to why the STOCK Act is not enforced appropriately, but they illustrate how the current penalty system is inconsistent and ineffective… Recommended Link [#1 battery stock for 2023]( [image]( Former Goldman Sachs executive Nomi Prins recently announced her #1 battery stock for 2023. It’s a tiny company. It trades for around $4 dollars. But it’s backed by 5 billionaires (Bill Gates, Jack Ma, Richard Branson, Michael Bloomberg, & Jeff Bezos). And it has the potential to ignite a $130 trillion new energy revolution. So you can see why all these billionaires are backing this tiny $4 company, Nomi’s put together a 30-second demonstration of this new battery in action. [Click here for the quick demo and the full story.]( -- What This Means for Your Money Due to concerns about lawmakers’ trading, and the failure of the STOCK Act to hold them accountable, we’ve recently seen more push for the so-called PELOSI Act (short for the Preventing Elected Leaders from Owning Securities and Investments Act). On January 24, 2023, Senator Josh Hawley (R-MO.) introduced the PELOSI Act to ban members of Congress from trading and owning stocks. But getting politicians to take away their own ability to trade securities while in Congress would be like asking a bird not to fly. Do not hold your breath waiting for it to happen. So, what can we do? Well, we can follow where their money is going… and take advantage of it. Tomorrow and next week, we’ll dive into the sectors and individual companies at the core of Congress’ investments. And I’ll show you how you, too, can trade like a politician. Happy investing, and I’ll be in touch again soon. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). --------------------------------------------------------------- MAILBAG Following [Monday’s piece on corporate stock buybacks]( Richard wrote in to express his thoughts… It’s not going to happen and is just more divisive talk. Philosophically I do not like buybacks, but, as an investor, I’ll take them. When are we going to see the money rolling out for the grid and infrastructure? I believe excessive regulation will slow it down and will have the same effect on onshoring. So the effects of the supply chain will continue to have a nagging impact on inflation. As President Obama said, “Don’t underestimate Biden’s ability to screw things up.” He does not have a single competent Cabinet head. – Richard S. Are you with Richard that the 4% tax on stock buybacks won’t happen? And after reading today’s article on congressional trading, what do you think of the vast amount of congressional trading and the laws in place to limit it? Are we doing enough to constrain this practice? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… [No Bear Market Here]( Every year, Deloitte Research publishes a list of the 500 fastest-growing companies in North America. And the gains are simply insane. On the most recent list, the lowest gain is around 200%. And it just goes up from there… 500%... 1,000%... 10,000%... And even as high as 87,037%. You can get your hands on [the full list here.]( But more importantly… One small-town millionaire who went broke used the secret behind this list to get rich again. And for the first time ever, he’s agreed to reveal his secret. [Click here to discover this millionaire’s wealth-building secret.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [The Trader’s Guide to Technical Analysis]( [The Ultimate Guide to Taking Back Your Privacy]( [Rogue Economincs]( Rogue Economics 55 NE 5th Avenue, Delray Beach, FL 33483 [www.rogueeconomics.com]( [Tweet]( [TWITTER]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Rogue Economics welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. 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