NEW YORK (NewsNation Now) — TikTok users are trading stocks by copying members of Congress, cynically assuming they have inside information. But is that a good financial move?
Get daily news, weather, and breaking news alerts straight to your inbox! Sign up for abc27 newsletters here!
The best advice is always to do your own research and consult a financial professional.
If you don’t want to do any of that, there’s an app called Iris that lets you look at the stocks other people are picking.
A lot of people on TikTok are looking at what members of Congress are trading because, by law, they have to report it. According to the STOCK act, lawmakers must disclose their stock trades and those of their spouses within 45 days.
House Speaker Nancy Pelosi’s husband is an investor, so a lot of people are following her moves and they say it’s been working out for them. In fact, one IRIS user calls Pelosi the market’s “biggest whale.”
NewsNationNow.com talked to Iris’ co-founder Wednesday. He said his philosophy is “if you can’t beat ‘em, join ‘em.”
The app is designed to be educational and level the playing field.
Interest in this grew near the beginning of the COVID-19 pandemic when we had numerous reports of lawmakers selling stock right before the market crashed.
But, anyone mirroring the trades of politicians, assuming they’re using inside information, needs to remember you invest at your own risk.
The most recent studies show trades made by lawmakers have actually underperformed the markets.