Why Insiders Are Bullish When Nobody Else Is

Crypto meltdowns. Tech implosions. The biggest rate hike in decades.

There’s a lot of scary stuff out there.

Last Monday, the S&P 500 slid into an “official” bear market after dropping 20% from its previous high. That’s alarming if you own the index. But owning the index is not something I would ever recommend.

Instead, I focus on individual stocks—here in Smart Money Monday , in High Conviction Investor , and in my personal portfolio.

  • If you read past the doomsday headlines and focus on specific stocks, there are plenty of bullish signals.

The most encouraging one right now… lots of insider buying.

Insiders sell for a slew of reasons. They sell to diversify. They sell to buy new houses. They sell when they think the stock is overvalued.

But insiders only buy for one reason: They expect the stock to go up. And they’re often correct. One study found that when insiders purchased shares of their own companies, those stocks outperformed the market by more than 6% annually.