One of the most confounding components of the 50% rally in stocks since March has been the extraordinarily low levels of insider buying compared to insider selling. As we’ve been reporting for months, the negative trend in insider buying and selling continues today. The latest insider buying and selling statistics continue to show a vote of no confidence from corporate insiders. In the last two weeks insiders purchased just over $17MM versus sales of over $700MM. All of this makes you wonder what corporate insiders are seeing that the investment community isn’t. The following chart from insidercow shows just how skewed the data has been in recent months:
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Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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