Dividends and Want to mimic stock trades of Congress members? There may soon be an App for that

Everyone on Wall Street has a system, sometimes it works sometimes it does not. However, if it works more than somebody else money moves into that space till it does not work that often. One system that everyone believes works is access to inside information that is material to the company. Depending on what the company does, as an individual you can watch companies in their daily actions if their strategic plans are working or not working, but to move the stock something has to be called material. Most people believe members of Congress who have many closed-door meetings with company CEOs and then can trade stocks on the information have information that could be material.

In an article by Larry MacDonald, 2 new etfs going through the regulatory bodies would track the stock picks of US Congress members and their families. The funds would be called Unusual Whales Subversive Democratic Trading ETF and the Unusual Whales Subversive Republican Trading ETF.

There are subscription websites including capitaltrades.com, housestockwatcher.com.

We also know as campaigns become more expensive every year, the people who are running are wealthier every year which means many have stock portfolios. One Georgia Senator spent about a hour of his day monitoring his portfolio.

Congress members have to report their trading every 45 days, but failure to do so has a token penalty.

In a book, one of the more successful Senators in the 50’s used to give shares to ensure votes. That should not be allowed now, do not know if it is.

There is a bill before the Congress to ban stock trading and ensure members of Congress either use blind trusts or buy mutual funds or ETFs, which would seem much more reasonable that the system which exists.

Linking to dividend paying stocks, every once there is a new system to beat the market and we all want to beat the market and become wealthier. Unfortunately, the best method is to use the power of compound interest over the long term and your will be wealthier. Dividends and capital appreciation work well as a tried-and-true system.

There are more questions than answers, till the next time – to raising questions.


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