Although stock trades by American politicians have drawn scrutiny, it has not stopped many of them, even as they sit in governmental bodies, participating in decision-making that may have an influence on the price of relevant stocks, with one notable example including Representative Michael McCaul.
As it happens, McCaul has just filed more than $2 million in stock trades, but the most interesting part is that his every single trade was a sell, according to the observations by the Nancy Pelosi Stock Tracker, the platform following politician stock trades, in an X post on August 19.
Which stocks has McCaul sold?
Specifically, his largest reported sales include stocks of payment card services corporation Visa (NYSE: V), investment banking and finance giant Goldman Sachs (NYSE: GS), entertainment behemoth Warner Bros. (NASDAQ: WBD), and Taiwan Semiconductor Manufacturing (NYSE: TSM).
Picks for you
Notably, McCaul currently sits on four House Committees – including as the Chair of the House Foreign Affairs Committee and Chair Emeritus on Homeland Security – raising questions over whether he might have inside information regarding the government’s future policies and important developments.
TMSC stock sale = insider semiconductor knowledge?
Particularly notable is his role as the head of the China Task Force in the Foreign Affairs Committee, which suggests the possibility of insider knowledge relevant to TSM stocks, given the strained relations between Taiwan and China and the United States policy on the matter.
Furthermore, McCaul is the founder of the Congressional High Tech Caucus and co-chairs the Artificial Intelligence Caucus, suggesting involvement in the semiconductor arena, and he previously filed a substantial investment in stock of TSMC’s rival, Advanced Micro Devices (NASDAQ: AMD).
Meanwhile, the price of Taiwan Semiconductor Manufacturing Company’s stock at press time stood at $175.45, recording a 0.52% increase on the day, advancing 4.43% across the past week, and accumulating a gain of 3.60% over the month, albeit declining 0.43% in pre-market trading.
![TSM stock price 1-day chart. Source: Google Finance](https://assets.finbold.com/uploads/2024/08/Screenshot-2024-08-20-130103.png)
Ultimately, McCaul may or may not have insider knowledge that has influenced his stock trades, but his involvement in relevant political bodies does raise questions regarding the issue, as it does when it comes to other politicians, particularly Nancy Pelosi, who seems to be one of the savviest stock traders among them.
Buy stocks now with eToro – trusted and advanced investment platform
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.