It takes guts to buy stocks in a market as volatile as this one. Most investors feel that if they're going to stick their necks out, they need an edge. 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 stock 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 company's 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 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 since March 2020, the last bear market bottom. Bloomberg reported on this and noted 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 with its headline "Insider Buying Is Surging." Yet the spike in insider purchases coincided with investors pulling cash from their equity funds. The punters are acting on emotion. (Fear, particularly.) The insiders are acting on numbers, analysis and reason. And perhaps a different emotion. (Greed.) | 
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