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I understand what you are saying now better, thanks for clarifying. I still disagree that it would only affect small cap tickers. If it was only small cap ticke
by filoleg 5y ago
I understand what you are saying now better, thanks for clarifying. I still disagree that it would only affect small cap tickers. If it was only small cap tickers like you are saying, I would have been all in favor of your proposal with zero hesitation or second thoughts.
While Apple might be an outlier example, I think that a congress person heavily investing into even significant cap tickers (like Palantir or Ford or Pfizer or etc.) could move the market and turn into a self-fulfilling prophecy.
I am not worried about the investment dollar amount itself being the catalyst (because you are correct, senators don't have the raw amount of money needed to move the tickers by its own virtue), but everything else influenced by it. If everyone saw that some senator is extremely bullish on something like Ford, institutional investors will likely jump onto it as well (and large institutional investors definitely can affect the market with such moves, as they quite often do).
Not even mentioning retail, but I agree that it isn't that important and can be disregarded for the purpose of this conversation. You are right that the retail dollar amounts aren't really high enough to move the ticker on their own for non-small-cap tickers (but it can make the pump from large institutional investors more significant).