TikTok users trading stocks by copying members of Congress
FILE – In this Monday, Sept. 28, 2020 filer, a logo of a smartphone app TikTok is seen on a user post on a smartphone screen, in Tokyo. (AP Photo/Kiichiro Sato, File)
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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?
Probably not.
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 the 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.