The 'Congressional Stock God' Retires, Investors 'Suffer Huge Losses'

Former U.S. House Speaker Nancy Pelosi officially announced her retirement. This "stock god" on Capitol Hill, closely monitored by investors, is about to bid farewell to the political arena, and a host of investors who followed her trades will lose their most crucial source of information—"a huge loss."

On November 7, according to Global Times citing U.S. media reports, on November 6 local time, 85-year-old Democrat Nancy Pelosi announced that she would officially retire at the end of her current term as a congresswoman.

According to the latest media reports, once she leaves Congress, she will no longer be required to publicly disclose her family's stock holdings, which deprives many "Pelosi followers" of an important source of investment signals. Countless investors have previously monitored her disclosed stock trades, replicating her every move, and typically profiting from it.

This California Democrat gained fame during her forty-year congressional career for her precise stock trades, attracting millions of investors to follow her investment strategies, even leading to the creation of funds specifically tracking congressional members' trades. According to Capitol Trades data, the total amount of public trades related to Pelosi over the past three years is approximately $59 million.

Analysts point out that her exit will have a significant impact on the market. Dan Weiskopf, a senior portfolio manager at Tidal Financial Group, stated: "When Nancy Pelosi trades, the market immediately follows suit and drives the stock's movement."

Investor Enthusiasm Gives Rise to Specialized Funds

A complete investment ecosystem has formed around Pelosi's trades. An X platform account named "Nancy Pelosi Stock Tracker" has accumulated 1.2 million followers.

Financial experts, day traders, and political observers closely monitor the Pelosi family's trades and replicate their investment portfolios.

Weiskopf manages an ETF fund coded "NANC," which specifically invests in stocks bought and sold by all Democratic congressional members. He also manages another fund named "GOP," which tracks Republican members' trades.

According to official website data, the NANC fund has net assets of approximately $263 million, while the GOP fund has about $60 million. Both funds were launched in 2023 and have significantly outperformed the S&P 500 index.

Weiskopf explained the appeal of Pelosi's trades:

"Her trades reflect strong conviction, as she uses long-term options, which remain effective even after delayed disclosures. She has done very well; why not follow her?"

Legal Trades Spark Ethical Controversy

Under federal law, congressional members can legally hold and purchase stocks. However, the law requires members to disclose any trades made by themselves, their spouses, or children, or any stock activities conducted on their behalf within 45 days. They report trades in value ranges rather than exact amounts Federal disclosure documents show that most of the trades related to Pelosi were executed by her husband, Paul Pelosi. A spokesperson for Pelosi's office stated in 2022 that she does not participate in her husband's investment decisions.

Pelosi has consistently denied any wrongdoing and rejected claims that lawmakers may use non-public information for financial gain. When questioned in 2021 about her seemingly precise timing of trades, she defended herself by stating:

"We are a free market economy, and (lawmakers) should be able to participate in it."

Government ethics organizations have lobbied for years to ban stock trading by lawmakers. Under public pressure, Pelosi announced her support in 2022 for bipartisan efforts to prohibit stock trading in Congress, with related proposals gaining increasing support this year.

Ban Progressing or Changing the Game

Reports indicate that Congress is currently discussing multiple proposals, including those from progressive lawmakers like Representative Alexandria Ocasio-Cortez and Senator Elizabeth Warren, as well as support from conservative lawmakers like Representative Chip Roy and Senator Josh Hawley.

These developments, along with new support from President Trump and bipartisan congressional leadership this year, have led advocates to feel optimistic about the Republican-led Congress passing related legislation. Senate Republicans even renamed one of the proposals the "PELOSI Act."

Earlier this year, Pelosi reiterated her support for a ban on stock trading in Congress. However, this has not stopped her family from continuing to trade. Recently disclosed records show that her husband transferred at least $100,000 worth of Apple stock on October 22, which was donated to a Catholic university in Washington, D.C.

Weiskopf stated:

"Her trade disclosures do indeed affect the market. Her retirement is noteworthy, but many other lawmakers will continue this trend. Even with the most scrutinized trader gone, the industry tracking congressional trading will continue to operate."