Oh, Nancy. You’ve done it again.
I wrote back in July how Nancy Pelosi, the US House Speaker, has a crystal ball when it comes to the stock market. Her nickname, the Queen of Stonks, says it all.
Nvidia plunges but only after Pelosi’s sale
With US legislators required to file their stock orders within 45 days, per law from 2012, Pelosi is required to reveal all her trades – or her husband’s, as she claims. In a filing from July, she confirmed she had sold 25,000 shares of Nvidia.
Paying $165 per share, Pelosi received a windfall of $4.125 million.
The US Government told Nvidia last night to restrict chip sales in China and Russia. The stock plunged on the news, currently down 11%, trading at $134 per share. That means Pelosi’s sale would be worth $3.35 million today, a rough drop from the $4.125 million she received 5 weeks ago.
It’s just the latest prescient move which Pelosi has pulled off. Her doubters will say the fact she is involved in writing the legislation for these very same companies she is trading as the reason, but that could be just a coincidence…right?
Legality
I’m singling out Pelosi here because she is the highest profile representative involved in this practice, yet there is a whole bunch of them at it. It has actually been one of the few issues both political parties in the US have been able to agree on, funnily enough. Congress representatives have argued that banning stock trading would hamper efforts to recruit the best candidates for the job. I’ll let you decide about whether that makes sense.
The 2012
