Congress Buys "War Stocks"

Written By Alexander Boulden

Updated February 13, 2024

The Israel-Hamas war is all over the news these days.

And for good reason.

People are scared.

Buy guns, buy gold, they say.

Fear sells.

What are our leaders in Washington buying?

Stocks.

More on that in a minute…

The 24-hour news cycle is having a field day with this crisis…

As Israel plans its ground offensive, which will consist of armored bulldozers to pave the way and destroy any roadside bombs, followed by tanks and infantry, a massive sandstorm is washing over the area, preventing the attack from taking place.

Perhaps a divine sign or warning…

By now, Israel has killed many of the Hamas leaders through drone and rocket strikes.

In a fortunate turn of events for Israel, the military captured critical intel after a successful battle that outlined the Gaza underground tunnels that Hamas uses to quickly and quietly transport troops and equipment.

The Israeli military says it’s now effectively flooded the “metro,” as it’s called.

It looks like Israel is “winning” at this point, although, as I’ve said before, no one wins in war.

Battles are breaking out between the Israeli military and Hezbollah every day on Israel’s northern border, which adds more geopolitical risk.

Meanwhile, two American aircraft carriers have been sent to the region and are overlooking the chaos, and 2,000 U.S. troops are on 24-hour deployment notice.

It’s not looking good…

Israel won’t back down on this one, despite the biblical sandstorm, flooding, and odd waterspout that appeared in the sea near Tel Aviv…

Hamas is reportedly stealing the food, water, and medicine being shipped in by the U.N., a tale as old as time.

Iran is reportedly threatening retaliation if Israel invades Gaza.

It’s a big shit show…

To make sense of it all, I started tracking the money.

And what I found will shock you…

Follow the Money

Now, this isn’t some clickbait conspiracy theory to say that Congress knew about the attack and tried to play the stock market accordingly.

But it is just a little bit odd that in the months leading up to the attack on Israel — which caught both the U.S. and Israel “off-guard” — congressional members were making some big money moves.

Namely, they were buying what are called “war stocks.”

That’s defense contractors, oil companies, and cybersecurity firms.

Here’s what they're buying:

  • General Dynamics (NYSE: GD)
  • Exxon (NYSE: XOM)
  • Devon Energy (NYSE: DVN)
  • Chevron (NYSE: CVX)
  • Fortinet (NASDAQ: FTNT)

According to Finbold, “Some of the notable members who’ve entered the fray include Republicans Michael McCaul (Texas), Kevin Hern (Oklahoma), and Michael Guest (Mississippi), with the latter acquiring up to $15,000 of XOM in August. Among Democrats, Fankel (Florida), Richard Larsen (Washington), and Walter Schrader (Oregon) stand out.”

So why was Congress buying war stocks ahead of this new war?

Well, one obvious reason is that war stocks have historically done particularly well over time, especially with the Russia-Ukraine war continuing into its umpteenth month.

Another reason is that these companies pump a lot of money into lobbying Congress.

And a far-fetched answer is that maybe, just maybe, members of Congress caught wind of something brewing in the Middle East.

Pulling on this thread a little more, we know that the Biden administration announced on September 11 (an odd date to choose) that $6 billion in funds was being sent to Iran in exchange for five U.S. detainees.

According to The Guardian, George Washington University lecturer Sina Azodi said, “These are five U.S. detainees who have been held unjustly for years and they finally get to reunite with their families. At the same time, Iran gets access to its own money. It’s not coming from taxpayers’ money, so in a sense the U.S. is getting its hostages for free. Iran gets access to its own money for purposes that should have been exempt from sanctions regardless, because U.S. law provides for exemptions for food and medicine. So it’s a good deal for everybody.”

Now, Iran made this money through oil sales a few years ago, but it was frozen by the Trump administration as part of sanctions on Iran.

So releasing the funds was seen as a sign of good faith by the current admin, and the funds were only supposed to be used for food, water, and medicine.

According to CNN, a senior state department official said, “As we’ve said many times, it can only be used to purchase food, medicine, medical devices, and agricultural products for the people of Iran. Period.”

However, the funds have since been frozen again.

As PolitiFact reports, “Still, the ‘quiet understanding’ not to move the money right now appears to be largely symbolic, given the strict restrictions that were already tied to the funds.”

Secretary of State Antony Blinken reassured a skeptical audience that none of the funds have been spent or accessed.

He continued, “We have strict oversight of the funds, and we retain the right to freeze them.”

But it remains to be seen if Iran considered these funds “money in the bank” and used them as collateral to purchase weapons or make backdoor deals.

Ahead of the Game

Did members of Congress know that these funds would ultimately be used to fuel a war or at least increase tensions in the area?

I’d like to think not, but I wouldn’t be surprised, at this point.

Congress is always — and I mean always — ahead of the game when it comes to the hottest stocks to buy.

They never let a good crisis go to waste…

They’re part of a legacy group of investors I call “Super Traders.”

And they’re the people and organizations that really control the world, the money, and the stocks to go along with it all.

That’s why I keep tabs on these Super Traders in my premium trading service, where I’ve created an exclusive portfolio with their top stock picks.

If you want to stay ahead of the game just like our members of Congress, then you’ll want to check out all the details before Main Street wakes up and catches on.

Stay frosty,

Alexander Boulden
Editor, Wealth Daily

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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.

Alexander is the investment director of Insider Stakeout — a weekly investment advisory service dedicated to tracking the smartest money on the planet so that his readers can achieve life-altering, market-beating returns. He also serves at the managing editor for R.I.C.H. Report, a comprehensive service that uses the highest-quality investment research and strategies that guides its members in growing their wealth on top of preserving it.

Check out his editor’s page here.

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