I’ve been seeing rumblings in the news about lawmakers looking into banning stock trading by members of Congress.
Quite honestly, it’s surprising that this hasn’t been considered until now.
Well, if it passes — and that’s a big IF— I think it would only be fair.
If me or any of the other traders here got insider information like the members of Congress have access to and traded stocks using that information, we’d all be in jail for insider trading. Case closed.
I don’t see why Congress should be above the law on that, but somehow they are.
If this comes to pass, and I must reiterate that I’m still skeptical…
But if this comes to pass the bad thing is it wouldn’t take effect until March of 2027 — three years from now.
In the meantime, all these lawmakers can still make “bank” for three more years.
After that, though, the proposal would restrict them and their families from trading all stocks.
But that’s one thing I disagree with. See, I don’t think they should be restricted from trading all stocks, just the ones they give government contracts to, as well as all the lobbying companies.
Granted, that’s a lot, but I’m sure they don’t have any dealings with companies like Byrna (BYRN) or GameStop (GME), for example.
But all the others? They should be restricted.
Think about it, if lawmakers are heavily invested in Boeing (BA) or Lockheed Martin (LMT), what’s to stop them from passing legislation that makes it easier for these companies to get government contracts?
Or what’s to stop them from using their inside connections to steer contracts to specific companies that they own shares of?
It’s absolutely a conflict of interest.
And up till now, lawmakers have basically been “above the law”.
Because regular folks like you or I — if we ever had access to insider info like these politicians do — would absolutely be in jail if we traded using that information.
And I don’t think it will affect the market at all like some people are saying.
In other words, once this legislation takes effect, I don’t think NVDA is suddenly going to take a nosedive because of it. It would just make things more fair across the board.
If we, as regular investors, have to follow the rules, then those making the rules should have to as well. It’s about leveling the playing field and ensuring fairness in the market.
— Geof Smith
P.S. Nate Tucci just shared 2 hot stocks he’s got his eye on and explained exactly why they’re on his radar. Click here to check out his video and get the tickers.
