As politicians in the United States continue to attract attention over their stock trading habits, which their critics believe might entail unfair advantage, the history of one Congressman’s sales of Goldman Sachs (NYSE: GS) stock, in particular, has come into the limelight.
Specifically, Michael McCaul, a member of the U.S. House of Representatives for Texas’s 10th congressional district, has sold around $1.3 million worth of Goldman Sachs stocks in the past three years, according to the information shared by Nancy Pelosi Stock Tracker on August 20.
Insider information fueling McCaul’s GS stock trades?
At the same time, as the platform pointed out, he had not made a single purchase of Goldman Sachs stock, unlike with his other recently filed sales, including those of Visa (NYSE: V), Warner Bros. (NASDAQ: WBD), and Taiwan Semiconductor Manufacturing (NYSE: TSM).
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Indeed, considering his massive selloff of stocks of one of the largest American multinational investment banks and financial services companies in the absence of buys, questions have arisen as to whether McCaul might be privy to certain information to indicate a possible banking crisis.
As it happens, he holds the position of the Foreign Affairs House Committee Chair and sits in several other political bodies, so he might have access to information relevant to the U.S. financial sector, such as international trade policies or potential sanctions on countries like Russia or Iran.
Goldman Sachs stock price analysis
Meanwhile, the price of Goldman Sachs stock at press time amounted to $504.68, demonstrating a 2.93% increase over the week, adding up to the advance of 3.62% on its monthly chart, as well as gaining 29.97% year-to-date (YTD), according to the most recent data.
Ultimately, McCaul might hold knowledge of certain developments that could negatively affect the financial sector in the U.S. and, consequently, the price of GS stock, but doing one’s own research when investing instead of relying exclusively on politicians’ trading practices is critical, especially when involving large amounts of money.
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