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Why Now Is The Time To Pay Attention To Insider Activity

The high levels of market volatility we're seeing now have led to levels of uncertainty many investors are not accustomed to.

As such, concerns about how one's portfolio may perform in the short-term seem to have largely overtaken long-term perspectives, which were the status quo at the beginning of the year.

This sentiment seems to be circulating within the C-suite and executive ranks of many publicly traded companies, to the point where we're now seeing larger volumes of insider transactions in recent weeks than was previously typical.

This action begs the question for many investors: is now the time to ignore these transactions completely? One may take the view that near-term information bears less weight given the reality of the coronavirus pandemic has completely shifted the technology plates of finance at least for now.

I'd argue that, on the contrary, investors need to be more keenly aware than ever of the comings and goings of their investments. Right now is when fortunes will be made and lost.

As always, please remember to consult with a certified financial advisor and do your own research before making investing decisions insider buying or selling activity is not necessarily indicative of the future performance of a given company stock price and insiders regularly buy or sell positions and companies they manage for reasons other than expectations of future stock price performance.

Analyzing insider transactions in a given stock is one tool of many to glean pertinent information to assist in investment decision-making.

Invest wisely, my friends.