During this recent period of severe economic uncertainty we’ve experienced due to the coronavirus pandemic, investors may have been only focused on watching the plummeting stock prices of their investments and seeing their returns turn negative fast. Insiders, on the other hand, turned out to be the biggest bulls of all, with many buying heavily during this recent market crash.
In order to be a senior executive at any company, a great deal of confidence in one’s own abilities but also the mission and value one’s company provides comes in handy. To bet millions of dollars on such future performance during a global pandemic, on the other hand, takes serious guts.
According to a recent report, insiders bought more than $66 million of stock in TSX60-listed companies during the crash, a nod of the hat to investors everywhere to stay confident even in the worst of times that holding onto positions will eventually pay off long-term. Over-reacting to any event has been proven to be more detrimental in the long-term than just holding on, so stay invested!
As always, please remember to consult with a certified financial advisor into your own homework before making investing decisions. Insider buying and selling activity is not necessarily indicative of the future performance of a given company’s stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance. Analyzing insider transactions in a given stock is one tool of many to gain pertinent information to assist in investment decision making.
Invest wisely, my friends.
