It continues to get easier for the average investor to place their money in the same stocks that Congress owns. Over the last few years there has been a spate of ETFs released which track the activity of members of both houses of Congress. That has made it easier to track their portfolio movements.
Still, it can often seem like those on Capitol Hill have an unfair advantage over the layman when it comes to investment information. Whether they do or don’t, investors will never be able to precisely mimic their trades. That is true as the STOCK Act gives members a 30 to 45 day window before they have to disclose transactions. And even then, there are dozens of examples of members failing to follow the law.
We are left sifting through the holdings of various ETFs and other pieces of information that give us insights into their positions. Based on that information it would seem that stocks Congress owns are trying to enjoy the tech rally.
Intel (INTC)
Intel (NASDAQ:INTC) is the largest holding within the Unusual Whales Subversive Republican Trading ETF (BATS:KRUZ). It seems that the Republicans are highly interested in Intel stock making it an interesting consideration for the layman investor.
The outlook on Intel has essentially reset over the last month. It was roughly 4 weeks ago that the company provided results that were mixed. While the fourth quarter performance was strong the company’s first quarter outlook caused a lot of consternation. The result was that share prices dropped from approximately $50 down to $43.
Yet, Intel continues to represent the largest holding of the above mentioned ETF. One reason for the continued enthusiasm around the stock is on shoring efforts and a push to bring foundry services to the U.S. The continued push to decouple the semiconductor industry from China is a strong Republican rallying point. It will continue to drive focus on the firm which has been a strong recipient of domestic benefits to that end. That’s probably a good enough reason to invest in Intel at this point.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) represents the largest stock holding in the Democrat alternative known as the Unusual Whales Subversive Democratic Trading ETF (BATS:NANC).
Consensus opinions almost exclusively indicate that Microsoft continues to represent a strong investment at the moment. The company continues to go from strength to strength. It’s difficult to argue that Microsoft has been anything other than one of the biggest winners in the emergence of artificial intelligence. it’s investment into OpenAI has been highly successful.
Beyond that, its fundamental situation continues to improve which is actually an extension of its strong AI investment. revenues increased by 18% during the most recent quarter. The company was particularly strong from the perspective of data center investment and cloud development. Azure revenues increased by 30% during the quarter, outpacing headline growth substantially.
The company’s AI investment hasn’t been without issues though. Recent reports of malicious ChatGPT responses to customer prompts are a concern. Microsoft will certainly figure it out and continue to thrive this year. It is one of the most highly regarded stocks overall with which Congress apparently agrees.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) is a name that features among the top 10 holdings in both of the aforementioned ETFs. That’s probably unsurprising. Congressional members from both sides of the aisle likely agree that the outsized returns from the stock are simply too good to ignore.
Nvidia certainly hasn’t slowed down in 2024. Share prices have risen from $500 to $875. Investors are broadly aware that Nvidia’s market capitalization is rising to tremendous heights. It has broken through the $2 trillion threshold. Further, it is worth more than the total value of Canada’s economy. Everyone, myself included, was aware of Nvidia’s incredible power. Even so, that statistic gave me pause.
In any case, the members of Congress can aptly be characterized as power hungry people. It should be no surprise then that when looking at stocks Congress owns, both sides of the aisle are heavily invested in Nvidia at this point.
On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.