How Musk's Millions Shape Congress

Author

David Love
October 10, 2024

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POLITICS
Last Week’s Congressional Trades

Insights from our Congress Trading Dashboard

Several members of Congress have already made millions of dollars in the stock market in 2024:

  • Wisconsin’s Senate race is now a toss-up. The GOP challenger, Eric Hovde, might be the first member of WallStreetBets in Congress:

    • He had capital gains of up to $2M from GameStop, GME, last year. He had gains of up to $3.1M from AMC.

    • He also traded stock in Bed, Bath, and Beyond and PacWest Bank. It looks like he has sold almost all of his GameStop and AMC stock.

    • We estimate that his net worth is ~$320M, which would make him the second richest politician in Congress.

DATA ROUNDUP
Elon Musk’s America PAC Election spending

In the world of politics, money talks, and corporations are often the loudest voices. Our team has been digging deep into the complex web of election donations, uncovering some startling truths about how billionaires & companies wield their financial influence.

One of the most intriguing findings is the practice of "hedging bets." Many corporations don't just support one party or candidate; they spread their donations across the political spectrum.

However, our data collection efforts have revealed some eye-opening figures. Take Elon Musk's America PAC, for instance. We've estimated that in this month alone, he has already poured $11 million into various political causes. But where exactly is this money going?

The numbers are staggering. Approximately $79 million has been spent in support of Donald Trump and in opposition to Kamala Harris.

But it doesn't stop there. An additional $8 million has been funneled into various congressional races. This highlights how corporate influence extends beyond just the presidential race, shaping the composition of Congress as well.

Here are the congressional candidates that have been recipients of this spending:

When individuals & corporations can spend such vast sums to influence elections, what does that mean for the average voter? How does this impact policy decisions and legislative priorities?


Recent Insider Purchases & Sales

The aviation industry has faced numerous challenges in recent years, from pandemic-related disruptions to fuel price volatility.

Southwest Airlines ($LUV) is making waves with recent insider buying activity that's turning heads in the investment community. Here's what's catching attention:

Director Rakesh Gangwal bold move:

  • Purchased millions of shares over just two days

  • Transactions occurred in late September and early October 2024

  • Share prices around $30

  • Total investment exceeding $100 million.

Officer and Director Gary Kelly:

  • Direct purchase of over a million shares

  • Additional stock gift

  • Further reinforces leadership's positive outlook

These significant insider purchases send a powerful message about the confidence Southwest's leadership has in the company's future. With the stock currently trading at $30, these insiders appear to be signaling their belief that the airline is undervalued and poised for growth.

Insights from our Insider Trading Dashboard

NEWS
Ray Dalio Predicts Limited Fed Rate Cuts Despite Economic Pressures

Billionaire investor Ray Dalio does not expect the Federal Reserve to make "significant cuts in rates" despite last month’s 50-basis-point reduction. Speaking at the Greenwich Economic Forum, the founder of Bridgewater Associates remarked that the U.S. economy is in a relatively good balance, allowing the Fed to maintain a measured approach moving forward. Dalio’s comments come after the first rate cut in four years, as a strong September jobs report provided policymakers the flexibility to slow the pace of cuts.

Dalio also expressed concerns about the U.S. Treasury bond market, citing a unique supply-demand situation. He noted that Treasuries, which make up a significant portion of institutional investors’ portfolios, may be overheld, creating risks for future returns. Geopolitical tensions, Dalio warned, have made foreign governments wary of holding U.S. bonds, particularly due to fears of sanctions. These factors contribute to uncertainty in the bond market, further complicating the Fed's policy decisions.