White House Chief of Staff Sold Stocks Amid COVID-19, Contradicting Trump's Economic Optimism

Strategic Insights -

In early March, President Donald Trump and his top economic advisors assured the country that the economy remained strong, but behind the scenes, White House Chief of Staff Mick Mulvaney, then acting, was taking a less sanguine view. Mulvaney sold between $215,000 and $550,000 in publicly traded securities on March 4, just days before he departed from the White House. This move contradicts the official White House position on the economy's strength at the time.

Key Takeaways:

  • Mulvaney's sales of stocks amid COVID-19 market turmoil have come under scrutiny, with some lawmakers and ethics experts questioning whether he used inside information from his official duties to inform his investment decisions.
  • Mulvaney's sales were a break from prior years, as he didn't report selling any stocks or securities in 2019 in his annual financial disclosure filing.
  • The transactions were significant for Mulvaney's portfolio, given his and his wife's relatively limited cash and liquid assets.
  • Mulvaney's wife had holdings of between $4,000 and $60,000 in four mutual funds, which she later reported selling in late March.
  • The Justice Department is currently investigating Sen. Richard Burr (R-N.C.) over his stock sales this year, amid allegations that he used inside information to inform his decisions.

Statistics:

  • Mulvaney sold between $215,000 and $550,000 in publicly traded securities on March 4.
  • The transactions were a break from prior years, as he didn't report selling any stocks or securities in 2019 in his annual financial disclosure filing.
  • Mulvaney's wife had holdings of between $4,000 and $60,000 in four mutual funds, which she later reported selling in late March.

Sources:

1. https://extapps2.oge.gov/201/Presiden.nsf/PAS+Index/2F9E009FED1B7567852585850027DB77/$FILE/John-M-Mulvaney-2020-278TERM.pdf

2. https://money.usnews.com/funds/mutual-funds/large-growth/columbia-disciplined-growth-fund/clqzx/holdings

3. https://money.usnews.com/funds/mutual-funds/large-value/american-beacon-bridgeway-lrg-cap-val-fd/bwlyx/holdings

4. https://money.usnews.com/funds/mutual-funds/small-value/nuveen-small-cap-value-fund/fsccx/holdings

5. https://www.cnbc.com/2020/03/04/stock-market-today-live.html

6. https://finance.yahoo.com/quote/CLQZX/chart?p=CLQZX#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