3 Trades Members of Congress Are Making Right Now

Key Points

• Retail investors should pay attention to the stocks that members of Congress are buying.
• Knowing what Congressional leaders are buying can give investors insight into future legislation that could benefit these companies.
• One of the stocks that members of Congress own is one of the worst-performing stocks in the last month; what do they know?

Whether or not members of Congress should be allowed to buy or sell stocks is another topic. Retail investors should keep their eyes on the ball. That means, if investors can’t beat them, they may be wise to join them.

Members of Congress have access to information that retail investors lack. They are also close to Washington's power centers, another valuable currency. 

You can use MarketBeat’s Congressional Data tool to get tomorrow’s news today. Knowing the investments that draw the most interest from members of Congress can point investors to opportunities the media may be downplaying.

One Senator Is Buying This ETF Like a Hedge Fund Manager

The Trump administration is expected to be friendly towards Bitcoin and cryptocurrency. That seems to be the opinion of Senator David McCormick. The Republican from Pennsylvania has made 18 separate buys of the Bitwise Bitcoin ETF NYSEARCA: BITB in the last 90 days. While the exact amount is unknown, each transaction was for an amount between $15,000 and $100,000.

It appears that the Senator is on to something. The BITB ETF is up 17% in the 90 days since the purchases started. This passively managed fund tracks the price performance of spot Bitcoin and holds Bitcoin directly in a secure multi-layer cold storage wallet. 

Bitcoin's surge this year stems from growing concern about the unsustainability of the U.S. debt. That concern is unlikely to go away even if Congress successfully passes President Trump’s “big, beautiful bill.”

 Bitwise analysts point out that investors are increasingly seeing Bitcoin as a hedge against an unstable dollar.

Even Jamie Dimon, the CEO of JPMorgan Chase & Co. NYSE: JPM and a renowned Bitcoin skeptic, has said the bank will allow clients to buy Bitcoin.

His “buy at your own risk” mantra is hardly a ringing endorsement. However, whether it’s a hedge or a risk asset, the growing acceptance of Bitcoin shows that the worst-case scenario may be evaporating.

This Big Pharma Stock Is Becoming a “Most-Favored” Stock by One Member of Congress

Medical stocks, particularly those related to the pharmaceutical industry, dropped sharply after President Trump announced his intention to make the United States the “most-favored nation” regarding drug pricing.

That would seem to be detrimental to a company like Eli Lilly & Co. NYSE: LLY. The company’s popular GLP-1 drugs, Zepbound and Mounjaro, come with a hefty price tag, which is good for its profit margins. LLY stock is down about 12% since the announcement, as investors may be concerned that the stock is overvalued.

But it would seem that Marjorie Taylor Greene may be playing the long game. Georgia's congresswoman has made two stock purchases in the last 30 days. She may be buying the dip because of the company's pledge to spend up to $50 billion to reshore its drug production into the United States.

That’s likely to keep Eli Lilly in the good graces of the Trump administration and may make this a buyable dip.

The One Pick That May Raise Eyebrows

UnitedHealth Group Inc. NYSE: UNH has been one of the worst-performing stocks in the last  30 days, down 29% as of May 22. In fact, the downturn that started in April has pushed the stock down near a 5-year low. The collapse in the stock has been responsible for weighing down the entire Dow 30 index, even as the NASDAQ and S&P 500 have moved higher.

UnitedHealth has been the subject of a slew of bad news. In addition to the tragic killing of a top executive, UNH has been under financial pressure as more patients are having procedures done that were delayed during the pandemic. However, regulatory issues are a bigger concern.

These issues include a recent report that the company made secret payments to nursing homes to reduce hospital transfers.

That hasn’t stopped several members of Congress from scooping up shares in the last 90 days. From March 1 through May 21, nine different members of Congress have bought UNH shares on 18 different occasions.

Marjorie Taylor Greene made two particularly noteworthy buys on May 14 and May 16, respectively, right around the time that UNH stock plunged.

Is Greene simply attempting to buy the dip, or is it a signal that Congressional insiders see the return of the former CEO as a positive sign? They may also believe that the company’s regulatory issues are manageable. As of May 22, there are over 1,000 call options on the stock for June 27 with a strike price of $350.