Why Politicians Are Rich… And How to Join Them

With the elections around the corner, it only makes sense to bring up the enormous elephant in the room: politicians are rich… and intend to stay that way.

Ben Carson left his campaign last month to spend time on a book tour. Trump came out with his own book recently.

Of course, none of that’s new. Newt Gingrich did the same last election cycle. 

And we know that the Clintons both made the vast majority of their wealth through book sales and speeches. The Obamas too.

What might not be so apparent — but surely not shocking all the same — is that the vast majority of politicians are also successful investors.

According to the Office of Public Records of the Secretary of the Senate, 50% of federally-elected politicians are millionaires. Much of that was due to “successful investments and portfolio management.”

I say that so tongue-in-cheek because of this other simple fact from the same watchdog group: members of the House of Representatives outperform regular investors by 6.8 percentage points.

Think about what that means. In years when you make 10%, they make 16.8%. When you lose 5%, they still make 1.8%.

You can’t tell me that they are just more naturally gifted at picking a good investment over a bad one.

And as my colleague at Top 10 Stocks, Dave Forest, discovered, it has much more to do with their willingness to invest on their own knowledge than their own natural talents.

But should you try to beat them at their own game? Absolutely not.

Don’t you think their access to private information will give them an edge?

Of course it does.

Now, you can look at this in two ways. You can be upset and try to vote for some honest civil servant to replace them… or you can join them in making money. Frankly, you should probably do both.

We can’t tell you how to vote — or at least I won’t. But now, with the somewhat recent passage of the STOCK Act, you can at least play along with them.

In 2012, President Obama signed the “Stop Trading on Congressional Knowledge Act” or STOCK Act. The whole idea was that everyone already knew that Congressional privileges also meant access to information that would let those that had that knowledge gain an advantage over the rest of the investment world.

And that’s obvious. If you are in cahoots with the Majority Whip of the House, for instance, and you find out that he just secured enough votes to pass an overdue budget, you could easily exit a position in Treasury bonds — knowing that fewer people will be needing to hold them for security after that news comes out.

The STOCK Act, at least under its original intent, stops that from happening. I could argue all day about the merits and consequences of such a bill. But the point is that it was passed and signed already. 

While it hardly did anything like its name intended — “Stop Trading on Congressional Knowledge” — it did force all publicly-elected officials to submit to public records what exactly they own, how much they traded, and when they made those transactions every 45 days… rather than each year, as the previous rule had them do.

Now, this is no great situation. And no one can promise you’ll be able to equal their 6.8 points performance advantage. But it does allow you to compare portfolios. Now, we can look at what they hold, when they hold it, and when they decide to sell it — at least approximately.

As I hinted at, my colleague, Dave Forest has already done this job thoroughly. In fact, he studies these public records more than almost anyone I’ve ever come across. 

Of his “Top 10 Stocks For 2016,” he has several widely held by politicians. In fact, he has one that is owned by more than 10% — or 60 total members — of the House and the Senate. 

He has another owned by Ted Cruz — amounting to a $100,000 stake in this particular company. And Cruz, someone on the inside of now both the Senate and the presidential race, knows a thing or two about proprietary information.

Finally, Dave is recommending a tech play owned by John Kerry himself. John Boehner too. These are not men to ignore a profit potential when it’s in front of them.

Even if you still aren’t convinced that this style of investment is worth at least looking into, consider this…

The Keystone Pipeline has been one of America’s most controversial political topics for years. If it is ever truly built, it would carry Canadian Oil Sands from as far as Alberta to Houston, potentially lowering the cost of oil and gas in the process. It could also play a major role in the health of the surrounding ecology. That’s the debate.

But it is just a pipeline, and at the end of the day, pipelines are nothing new in this country.

There are a few companies with similar pipelines already in place. So why are politicians fighting about this one? Because they already own the other ones. Why pass something that will cut into the competitiveness of their own investments?

Now, I won’t divulge all of my colleague’s hard work here, so I can’t get into the names of these competitive pipeline companies.

But the notion that this is going on every day should at least wake you up to how powerful this whole political investment idea is. 

If you’re interested in finding out more about these highly lucrative pipeline companies that are making members Congress so wealthy… and would like to get your hands on Dave’s new “Top 10 Stocks For 2016” report, you don’t want to miss this new presentation

It contains facts on all of his favorite stocks for the coming year including a “Crash-Protection” stock that had record profits during The Great Recession and a “Forever” Stock that turned $1,000 into $2.7 million. 

To see all of Dave’s “Top 10 Stocks for 2016” just visit this link