What to do when our own government is trading against you
- 1 day ago
- 2 min read
Insider trading has always run counter to the principles of a free market, yet history is full of examples of it, and today it seems much worse and more personal. For investors who feel they're up against a much larger and market-moving player, our own government, here are a few things worth understanding.
The president exceeded 21,000 trades last year, and his crypto businesses brought in nearly $1.2 billion over that same period.^1 Separately, a company backed by two of his sons secured an Air Force contract, adding to a broader pattern of family business interests intersecting with government decisions. And, Truth Social now sells early access to the president's posts — which have repeatedly moved markets — for up to $100,000 a month, a product that ethics experts and members of Congress have already flagged as a potential insider trading concern.^2
The White House has also taken direct financial stakes in companies it regulates — converting government grants into a 9.9% equity position in Intel, and striking a deal where Nvidia and AMD hand over 15% of their China chip sales. Disclosures show the president personally bought Nvidia stock days before a major company announcement, and personally began buying Intel shares months after the government's own stake had already driven the price sharply higher.^3
Investors share a sense that the game is rigged, and — for anyone who tries to trade around the noise — a real risk of losing money chasing information they don't actually have.
There's a silver lining, though: insiders also don't profit from a market crash, setting the expectation that it remains in everyone's interest to keep markets moving higher. Anyone positioned to benefit from short-term volatility still needs a functioning market and counterparties willing to trade the other side. This concept keeps portfolios intact and with less of a fear that stock prices will deteriorate in the short term.
For individual investors, the practical response isn't to try to out-trade people with faster information — it's to stop playing that game entirely. Stay diversified across asset classes — gold, bonds, and international equities all reduce sensitivity to any single headline or policy surprise. Favor rules-based rebalancing over reacting to news in real time; the whole point of a paid, millisecond-early data feed is to beat discretionary traders reacting to the same news slower. And remember that time in the market, not timing the market, is still the most reliable edge available to everyone equally.
At Eureka Wealth Management, I help clients steer clear of the noise and keep the focus on a successful retirement, tax and estate, and investment strategy. Call for a free initial consultation or book online at eurekawealthmanagement.com.