Poll: Politicians and The Market 📈

Table of Contents

This week, we asked the Invstr Community what their opinion is on politicians and their relatives having the ability to own stocks. The winner, with almost half of the votes, was the 47 percent of Invstrs who believe that politicians should be banned from owning stocks. The reports of politicians completing perfectly timed trades frustrated and angered retail investors for several years now. In a position of power, people believe that these politicians can not only know the outcomes of stocks after undisclosed policy action but also may be influenced to act on policy due to positions they already hold. For example, during the pandemic, officials knew three days before the public about a virus outbreak in Wuhan, China. Furthermore, recent reports have been released claiming that over 240 officials at federal health agencies owned a total of $9 to $28 million in stocks of drug manufacturing and biotechnology companies that won federal contracts related to Covid-19. Instances like these create questions about the just nature of federal officials and policymakers having the ability to even own any stocks.

In second place, we have the 38% of Invstrs who believe that barring politicians from owning any stocks are not fair. As valid as it may seem, completely locking all politicians and their family members may not seem like the right way to solve the issue. Several have claimed that limits on short-term trades and prohibiting investments in companies in the direct question of policy action may be a better method to solve this issue. To close out the podium, we have the 15% of Invstrs who don’t really know if politicians should be banned from trading or not. The circumstance itself is quite a difficult one to decide on a plan of action. Although we may see politicians make trades that are suspiciously timed right, sometimes we don’t have substantial evidence to prove they had the information to influence their trades. Also, it is certain that there are several thousands of these officials that do not use their information but hold long-term investments to be financially responsible. There can be a lot of subjective stipulations regarding the parameters of any laws prohibiting politicians from trading. If any policy would be enacted to bar politicians from trading, the Securities and Exchange Commission would have to carefully proceed to create the best possible outcome for all parties.

Do you think politicians have an unfair advantage in trading? Have fun and see you next time with more poll results!

  • The Invstr Team 🙂
Share:
More Posts
The Crude Oil Bust 🛢

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Metaverse Returns 🤖

Meta, led by CEO Mark Zuckerberg, is intensifying its commitment to innovation in the Metaverse through the introduction of the Quest 3 VR headset.

Higher Rate Households 📈

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.