This Just In: U.S. Politicians Profiting From the Ukraine Crisis

There’s one sector of the economy that even Washington elites can’t access...

Posted March 14, 2022

Those pesky insiders are at it again.

Just when you thought our politicians in Washington couldn’t get any lower, they go and do something like this...

corruption

First it was the 2008 financial crisis, then the pandemic, and now the war in Ukraine.

It’s mind-blowing that our lawmakers are still allowed to do this, but hey, they make the laws, so they feel like they can do what they want with their investments.

Digging a bit deeper, we can find out exactly who purchased what and why.

All we have to do is look at these politicians’ financial disclosure forms to catch them red-handed.

First, Rep. Marjorie Taylor Greene purchased American oil stock Chevron (NYSE: CVX), defense contractor Lockheed Martin (NYSE: LMT), and renewable energy company NextEra Energy (NYSE: NEE) on Feb. 22, just two days before the Russian invasion of Ukraine.

As of this writing, her trades are looking good for the month...

insider trading

Think she knew the war was going to happen?

I'll let you be the judge of that.

She even tweeted about her savvy purchases, saying, “War and rumors of war is incredibly profitable and convenient. And just like that, the media now has a lie to use as the reason for our shattered economy and out-of-control inflation. What a sad existence it must be to shill for Globalism & America Last politicians.”

Next, Rep. Virginia Foxx bought energy companies Plains All American Pipeline (NASDAQ: PAA), Phillips 66 (NYSE: PSX), and PPL Corp. (NYSE: PPL).

Her trades aren’t doing so hot...

insider trading

Rep. Rob Wittman bought the Energy Select Sector SPDR Fund (NASDAQ: XLE), an exchange-traded fund (ETF) that tracks the energy sector.

According to the Unusual Whales Twitter page, which tracks unusual market activity, neither Virginia Foxx, Marjorie Greene, nor Rob Wittman had purchased many energy plays before, raising some red flags.

Finally, Rep. Mark Green purchased energy companies Energy Transfer (NYSE: ET) and EnLink Midstream (NYSE: ENLC).

Looks like Wittman and Green made the right selections...

insider trading

Just about a month after Wittman’s stock purchases, he posted this online about ways to lower gas prices...

To unleash American energy production, President Biden must immediately:

    1. End his federal freeze on all new oil and gas projects.
    2. Fast-track pending LNG export permits.
    3. Expedite approval of all pipeline and energy development.
    4. Stop the regulatory assault on American energy development and financing.

Now, I agree with Wittman that we need to make American energy independence a priority in order to get energy prices down...

But this looks like a clear conflict of interest.

It makes sense though, as it’s obvious even our overpaid politicians are grasping at straws to find ways of making a profit during one of the worst periods of inflation in U.S. history.

Making Real Money During Inflation

Inflation just hit a 40-year high of 7.9%.

Not good...

We’ve been pounding the table about rising inflation for the last several years.

But we’ve also touted the power of stock market returns even in an inflationary environment.

Now, most investors’ real return today (average market return minus the inflation rate) is just 2%.

While it’s true historically the broad market indexes are less volatile with inflation at less than 2%, one anti-inflation strategy is to purchase passive income stocks.

That’s because you can’t leave your money sitting in a savings account or stuffed in your mattress, as the savings rate sits at less than 1%. You simply can’t rely on cash anymore. As billionaire investor and hedge fund manager Ray Dalio famously said, “Cash is trash.”

And “safe” fixed interest rate bonds are no good either. If you buy a 10-year Treasury bond today at the current yield of 1.8%, assuming an average 4% inflation rate over the next decade, you’ll lock in a negative 2.2% return.

In terms of stocks, Warren Buffett recommends investing in productive assets, or companies that pay dividends. Real estate is an obvious productive asset as well, while things like excess furniture, machinery, gold jewelry, and paintings are considered unproductive because they don’t produce anything by sitting there.

And if you’re looking at purchasing individual stocks, Buffett says to own capital-light businesses, like software companies that don’t have to constantly reinvest money to buy new expensive products.

He also says to keep an eye on companies that have pricing power, which means they create in-demand products and can keep raising prices without pricing themselves out of the market.

The reason I turn to advice from investors like Buffett is that he's weathered more ups and downs than the typical investor.

And by now he’s very much on the inside, and it's a good place to be.

It’s Good on the Inside

If you’ve been reading me, you know I love following C-level executives, Wall Street hedge fund managers, and lawmakers in Washington to see where the big money’s flowing in the market.

It’s proven a very profitable strategy, indeed.

And, as I showed above, it’s been incredibly lucrative for most of the Washington elite.

But some projects are now being hidden even from our Beltway lawmakers, as billions of dollars are funneled into top-secret government and military projects every year.

And with the Ukraine crisis, military funding is only going to increase and bring along with it cutting-edge technologies only those with the right connections know about.

Our aerospace and defense expert Jason Simpkins has made those connections in his 15 years covering the industry, and he’s soon revealing the latest exciting tech to come out of these projects and the best way to play it before it goes mainstream.

We'll keep you posted...

Stay free,

Alexander Boulden
Editor, Outsider Club

After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing. Check out his editor's page here.

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