Members of Congress Are Loading Up on Johnson & Johnson and UnitedHealth. Here's Why Retail Investors Should Pay Attention.
Politicians serve on committees that set healthcare policy, monitor government contracts, and shape regulatory frameworks.
Overview
Investors closely monitor the stock trades of members of Congress. The logic is that these politicians serve on committees that set defense, financial, and healthcare policy, monitor government contracts, and shape regulatory frameworks, all of which can affect healthcare companies.
Explicit insider trading is illegal under the Stock Act, but lawmakers understand how legislative shifts or government spending will affect large healthcare companies such as UnitedHealth Group (NYSE: UNH) and Johnson & Johnson (NYSE: JNJ).
Details
Here are the Congress members buying these two stocks and why that should and shouldn't matter to retail investors.
Source
Originally published at www.fool.com.