Many investors are rightfully skeptical of Wall Street's entourage of brokers, and Oxford Club Chief Investment Strategist Alexander Green gets it. As a former Wall Street advisor himself, Alex knows one simple strategy that the Street doesn't want you to discover... and he's on a mission to get it into the hands of regular investors. Here are all of the important details... And read on below to see how this strategy can give you an edge in these volatile markets. - Ryan Fitzwater, Associate Publisher
Alexander Green, Chief Investment Strategist, The Oxford Club Not just a perceived edge, but an actual one. And the best edge, in my view, is to invest in the same stocks that the insiders are buying with their own money at current market prices. Insiders have purchased stocks in record numbers recently. Yet the typical punter is doing the exact opposite. Millions of investors have bailed out of stocks over the past few weeks because they couldn't take the pain anymore. (And in doing so, they turned paper losses into actual losses.) Corporate insiders couldn't take the pain anymore, either. They couldn't stand to see their companies' shares selling at fire-sale levels without doing something about it. And so they did... Recent data reveals that corporate insiders - whose purchases correctly signaled the bottom in 2020 and in other bear markets - are bottom-fishing. More than 1,100 corporate executives and officers snapped up shares of their own firms in May alone. It was the biggest ratio of buyers to sellers we'd seen since March 2020, the last bear market bottom. Bloomberg reported on this, noting that... The insider buy-sell ratio also jumped in August 2015 and late 2018, with the former preceding a market bottom and the latter coinciding with one.
CNBC cited the same phenomenon in an article headlined "Insider Buying Is Surging." Yet the spike in insider purchases coincided with investors pulling cash out of their equity funds. |
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