Corporates insiders have an unusually good track record of timing their personal buys/sells. There’s a process around their trades and they do have to jump thru regulatory hoops and various disclosures then they trade their own shares, but looking at what they do with their own money is an interesting exercise.
What are corporate insiders doing now? Buying….and buying at the fastest pace since 4Q2018. There have only been five other times in the past 12 years that corporate insiders were buying so much:
Summer 2010:
After the “Flash Crash” sent the equity market down -15% over six weeks
September 2011:
After the US debt lost its AAA rating and the equity markets had already gone down -20%
1Q2016:
After oil collapsed and after the equity market had already gone down -20%
4Q2018:
Fed chair Powell battles inflation that doesn’t exist, and after the market already down -20%
2Q2020:
COVID…..enough said
Investor sentiment at generational lows and corporate insiders buying……..interesting.
Richard Barrett
Chief Investment Officer
Congress Wealth Management LLC (“Congress”) is a registered investment advisor with the U.S. Securities and Exchange Commission (“SEC”). Registration does not imply a certain level of skill or training. For additional information, please visit our website at congresswealth.com or visit the Investment Adviser Public Disclosure website at www.adviserinfo.sec.gov by searching with Congress’ CRD #310873.
This note is provided for informational purposes only. Congress believes this information to be accurate and reliable but does not warrant it as to completeness or accuracy. This note may include candid statements, opinions and/or forecasts, including those regarding investment strategies and economic and market conditions; however, there is no guarantee that such statements, opinions and/or forecasts will prove to be correct. All such expressions of opinions or forecasts are subject to change without notice. Any projections, targets or estimates are forward looking statements and are based on Congress’ research, analysis, and assumption. Due to rapidly changing market conditions and the complexity of investment decisions, supplemental information and other sources may be required to make informed investment decisions based on your individual investment objectives and suitability specifications. This note is not a complete analysis of all material facts respecting any issuer, industry or security or of your investment objectives, parameters, needs or financial situation, and therefore is not a sufficient basis alone on which to base an investment decision. Clients should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this note. No portion of this note is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Investing entails the risk of loss of principal.
Comments are closed.