By Mathew in AI Ethics — 01 Apr 2025

Political Trading Exposed: How Congress Outperforms Wall Street Using Insider Information

In a riveting episode of Impact Theory with Tom Bilyeu, entrepreneur Chris Josephs, founder of Autopilot, discusses how Congress has essentially become a "corrupt hedge fund" and how his app allows everyday Americans to invest alongside politicians who consistently outperform the market.

Key Points

Chris Josephs created the 'Pelosi Tracker' and Autopilot app, allowing people to track and copy politicians' stock trades.
Congress members have consistently outperformed the market, raising questions about potential insider trading.
The 2012 STOCK Act requires politicians to disclose trades but has loopholes and weak enforcement.
Several politicians have made suspiciously timed trades before major market events, including during COVID-19.
The intersection of politics and investing has become a cultural phenomenon, especially among younger generations.
Political corruption and perceived insider trading have eroded public trust in government institutions.
The rise of meme coins and speculative investments reflects broader frustration with traditional financial systems.

The Birth of the "Pelosi Tracker"

The conversation begins with Chris Josephs explaining how he stumbled upon what appears to be one of Wall Street's most open secrets: members of Congress consistently outperform the market with their stock trades. After discovering that Nancy Pelosi's husband had purchased millions in Microsoft stock just before a major government contract announcement, Josephs created the "Pelosi Tracker" on social media.

"I was scrolling through Twitter and saw Nancy Pelosi's husband bought a bunch of Microsoft call options right before they announced a $22 billion contract with the government," Josephs explains. "I thought, 'That's weird,' so I started posting her trades on TikTok, and it blew up."

What began as a social media experiment quickly gained traction, with millions of views and thousands of followers eager to see what politicians were buying and selling. This unexpected virality revealed a deep public interest in political financial transparency and a growing suspicion about potential conflicts of interest.

Congress: America's Most Successful Hedge Fund?

Tom and Chris dive into the uncomfortable reality that members of Congress have consistently beaten market averages over decades. Chris cites research showing that politicians outperform the market by 5-10% annually, a track record that would make them among the most successful investors in the world.

"If you look at the data, Congress as a whole has beaten the S&P 500 by about 5-10% per year for the last few decades," Josephs notes. "That's better than Warren Buffett. That's better than almost any hedge fund. And it raises serious questions about how they're achieving these returns."

Josephs explains that while the 2012 STOCK Act technically requires politicians to disclose their trades within 45 days, the law has significant loopholes and almost no enforcement. Fines for late disclosures are minimal—often just $200—creating little incentive for compliance.

"The STOCK Act was supposed to prevent insider trading by Congress, but it's basically a joke," says Josephs. "The penalties are tiny, and there's virtually no enforcement. It's a law with no teeth."

Suspicious Timing: COVID-19 and Beyond

Some of the most egregious examples of potentially problematic trading occurred during the early days of the COVID-19 pandemic. Chris details how several senators, including Richard Burr and Kelly Loeffler, sold millions in stocks after receiving classified briefings about the pandemic's severity—just before the market crashed.

"Senator Burr literally sold between $628,000 and $1.7 million worth of stock on February 13th, 2020, right after he got a classified briefing about how bad COVID was going to be," Josephs explains. "The market crashed a few weeks later, and he avoided massive losses."

Tom expresses his outrage: "This isn't even subtle! How is this not a bigger scandal?"

Josephs points out that despite investigations by the SEC and FBI, charges were ultimately dropped—highlighting what he sees as a two-tiered justice system where politicians rarely face consequences for behavior that would land ordinary citizens in prison.

Autopilot: Democratizing Political Trading Strategies

Frustrated by these disparities, Josephs created Autopilot, an app that allows everyday Americans to automatically copy the trades of politicians. The app's slogan—"Invest Like a Politician"—captures both its functionality and its critique of the system.

"We built Autopilot to level the playing field," says Josephs. "If politicians are going to trade on information the rest of us don't have, at least now regular people can benefit from those same trades."

The app has struck a chord, particularly with younger investors who feel disillusioned with traditional financial systems. Users can choose which politicians to follow based on their trading performance, party affiliation, or committee assignments.

"Some people follow Nancy Pelosi because her returns are incredible. Others follow politicians on specific committees—like if someone's on the defense committee, they might have insight into defense contracts before the public knows," Josephs explains.

The Cultural Response to Political Corruption

The conversation shifts to how younger generations are responding to perceived corruption. Rather than traditional political activism, many are expressing their frustration through memes, social media, and alternative investments like cryptocurrency.

"Gen Z and millennials don't trust institutions anymore," observes Josephs. "They've grown up seeing corruption everywhere—in politics, on Wall Street, in big tech. So instead of trying to change the system through conventional means, they're creating parallel systems and making jokes about the corruption."

Tom agrees: "This is a fascinating cultural shift. Instead of marching in the streets, they're creating memes and betting on Trump coins."

Josephs notes that the explosion of meme coins—like the Trump-themed cryptocurrencies that surged after his indictment—represents both a form of political expression and a way for people to potentially profit from political events they can't control.

"People are thinking, 'If the system is rigged anyway, I might as well try to make money from it,'" he says. "It's cynical, but it's also pragmatic."

The Future of Political Finance

As the conversation concludes, Tom asks Chris about potential solutions to the problem of political insider trading. Josephs suggests several reforms, including requiring politicians to place assets in blind trusts, shortening disclosure windows from 45 days to 24 hours, and implementing stronger penalties for violations.

"Other countries have figured this out," Josephs points out. "In the UK, ministers have to put their investments in blind trusts. In Australia, they have much stricter disclosure requirements. This isn't an unsolvable problem—there's just no political will to solve it."

However, Josephs remains skeptical that significant reform will happen soon, given that those with the power to change the system are the same ones benefiting from it.

"The foxes are guarding the henhouse," he says. "Why would they voluntarily give up an advantage that's making them wealthy?"

The Power of Financial Autonomy

Despite the troubling implications of political trading, Josephs ends on a note of empowerment. By understanding how the financial system works—even its unfair aspects—individuals can make better decisions for their own financial futures.

"Knowledge is power," Josephs concludes. "Whether you use Autopilot or not, being aware of how politicians are investing their money gives you information you wouldn't otherwise have. In a system that often feels rigged against ordinary people, that awareness itself is valuable."

Tom agrees: "Transparency might be the best disinfectant. The more people understand what's happening, the more pressure there will be for change."

Whether through apps like Autopilot, increased media scrutiny, or growing public awareness, the conversation between Tom and Chris suggests that the days of politicians quietly profiting from their positions may be numbered—not because of new laws, but because technology is making these activities increasingly visible to the public.

Conclusion: Trust, Transparency, and Taking Control

The discussion between Tom Bilyeu and Chris Josephs illuminates a troubling aspect of American politics that often goes undiscussed in mainstream conversations. The consistent outperformance of the market by politicians raises serious questions about the integrity of our elected officials and the information asymmetries that exist between those in power and ordinary citizens.

While the problem of political insider trading may seem intractable, the conversation suggests that technology and transparency are changing the equation. Tools like Josephs' Autopilot app don't just allow individuals to potentially profit alongside politicians—they also shine a spotlight on behaviors that have traditionally happened in the shadows.

Perhaps most importantly, the episode highlights how younger generations are responding to institutional corruption not with despair but with adaptation, creating new systems and approaches that work around traditional power structures rather than trying to reform them directly.

As Chris Josephs puts it in the closing moments: "The game might be rigged, but now at least everyone can see the cards."

This episode of Impact Theory offers not just an exposé of a broken system, but also a glimpse into how technology, transparency, and cultural shifts might eventually force that system to change.

For the full conversation, watch the video here.