You may not know it from watching American politics, but the country’s leaders do know a thing or two about the U.S. economy.
How could they not?
Not only do members of the federal government have access to an ocean of first-hand data investors would kill for, but Senators and members of the House are connected to the country’s economic movers and shakers.
While prominent politicians’ portfolios aren’t windows into the future of the market, taking a peek inside can give you an idea of what industries and companies they believe in.
Let’s take a look at three stocks connected to one of Washington’s most prominent investors: Speaker of the House Nancy Pelosi.
Pelosi isn’t the one pulling the trigger on most of her trades. That would be her venture capitalist husband, Paul. And he’s loaded the family’s portfolio with a host of winners — primarily in the tech sector.
One of them could be worth buying with your leftover pennies.
Apple (AAPL)
As the representative of California’s 12th district — San Francisco — it’s no surprise that Speaker Pelosi is heavily invested in what Silicon Valley has to offer.
About 17% of Pelosi’s portfolio is made up of Apple shares, a bet that the ubiquitous tech/media/consumer electronics goliath will have more to offer in the future than simply a new version of the iPhone.
The company’s plays around augmented reality, virtual reality, the HomePod speaker, and the software inside the iPad should be exciting for investors.
They’ll provide consumers with some neat new gadgets to spend their money on, which should goose profits, while the technology powering these products will help position Apple for the next iterations of the internet, AI, and even laptop computers.
Apple’s stock has risen by 30% in the last year.
Microsoft (MSFT)
Microsoft shares account for over 14% of Pelosi’s stock portfolio.
Microsoft is often the odd man out when people discuss today’s tech titans, but the company has always thrived in the background, first by powering the computers of millions of businesses and individuals and then by becoming a leader in cloud computing.
Microsoft also owns LinkedIn, Skype, and Github, which alone boasts more than 65 million users.
Microsoft is facing stiff competition from Amazon in the cloud computing space, but some huge deals this year should more than make up for whatever ground has been lost to Spaceman Bezos.
The company will be supplying more than 120,000 augmented reality headsets to the U.S. Army, a contract that could be worth almost $22 billion over the next 10 years. Microsoft also recently announced the $19.7 billion purchase of Nuance Communications to bolster its healthcare offerings and become more of a player in an industry that is increasingly turning to tech for solutions.
Microsoft currently trades at a steep $310 per share. But if you’re on the fence about jumping in at a high price, you can build your own tech portfolio just by using digital nickels and dimes.
Nvidia Corporation (NVDA)
Some of Pelosi’s most recent transactions were purchases of shares in Nvidia.
Nvidia has its fingers in some very profitable pies. It first came to prominence by creating industry-leading graphics processing units for computers, which has tied the company’s fortunes to those of the rapidly growing computer gaming industry.
Nvidia is also known for its “system on a chip” units, powerful processors that major corporations like Amazon are already using in their data centers.
Nvidia’s next steps could be game-changers.
The company will be supplying the chip that drives the Nio ET7, the Chinese electric vehicle manufacturer’s first self-driving model, which is expected to be rolled out in early 2022.
And the unveiling of its first central processing unit, intended for high-end computing, could allow Nvidia to steal market share from dominant processor manufacturers like Intel and AMD.
A creative alternative
Nancy Pelosi also has ties to the art world, having collaborated with none other than European iconoclast Banksy for a piece unveiled in early 2020, “Kinetic Art with a Shred of Decency.”
Fine art is an intriguing alternative to the stock market for investors.
Since 1995, contemporary art has outperformed the S&P 500 by a commanding 174%, according to the Citi Global Art Market chart.
There was a time when investing in fine art required thousands, if not millions of dollars. But retail and accredited investors can now buy shares of masterpieces by artists like Claude Monet, Andy Warhol, and even Banksy himself without having to outbid a roomful of multimillionaires.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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