{"id":452759,"date":"2022-05-25T23:08:00","date_gmt":"2022-05-25T20:08:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/brett-arendss-roi-guess-whos-buying-stocks\/"},"modified":"2022-05-25T23:08:00","modified_gmt":"2022-05-25T20:08:00","slug":"brett-arendss-roi-guess-whos-buying-stocks","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/brett-arendss-roi-guess-whos-buying-stocks\/","title":{"rendered":"#Brett Arends&#039;s ROI: Guess who\u2019s buying stocks?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3df4ed1737b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3df4ed1737b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/brett-arendss-roi-guess-whos-buying-stocks\/#%E2%80%9CBrett_Arendss_ROI_Guess_whos_buying_stocks%E2%80%9D\" >&#8220;Brett Arends&#039;s ROI: Guess who\u2019s buying stocks?&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/brett-arendss-roi-guess-whos-buying-stocks\/#Insider_stock_purchases_have_surged_as_share_prices_have_plunged\" >Insider stock purchases have surged as share prices have plunged<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/brett-arendss-roi-guess-whos-buying-stocks\/#Brett_Arends\" >Brett Arends<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CBrett_Arendss_ROI_Guess_whos_buying_stocks%E2%80%9D\"><\/span>&#8220;Brett Arends&#039;s ROI: Guess who\u2019s buying stocks?&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Insider_stock_purchases_have_surged_as_share_prices_have_plunged\"><\/span>\n  Insider stock purchases have surged as share prices have plunged<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000899953\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0000899953\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Excellent <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>. <\/p>\n<p> Not only is pretty much everyone on Wall Street bearish, but one group\u00a0of people have turned bullish \u2014 and they are the ones who really matter.<\/p>\n<p>We\u2019re talking about company insiders. Chief executives, board members and the like. The ones who know what\u2019s really going on in business.<\/p>\n<div class=\"paywall\">\n       Those wondering whether to bail out of stock funds in their 401(k)\u00a0and IRAs in the market turmoil, and those thinking of adding to the stockholdings in their retirement plans\u00a0\u2014 take note.<\/p>\n<p>Three new reports dropped onto my desk and they all report the same thing: A big surge in insider buying.<\/p>\n<p>Insider stock purchases have surged as share prices have plunged, reports The Washington Service, a financial data company that has been tracking these\u00a0things\u00a0since the 1970s. And net buying just leapt to the highest levels since the March 2020 Covid crash.<\/p>\n<p>\u201cWhen looking at insiders buying to insiders selling so far this month, more insiders have purchased than sold for the first time since March 2020,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.washingtonservice.com\/blog\/posts\/2022\/may\/as-markets-tumble-aggregate-insider-buying-rises-sharply\/\" class=\"icon none\">the company reports<\/a>.<\/p>\n<p> Meanwhile, Midwestern money manager Leuthold just sent me a market update which reports that their own key metric of insider stock buying and selling has just turned \u201cmaximum bullish.\u201d Leuthold measures insider sells versus insider buys, and only looks at big transactions either way: People buying or selling more than 100,000 shares or $1\u00a0million\u00a0worth of stock.<\/p>\n<p>\u201cIn the last 30 years, maximum bullish readings on this indicator have been followed almost im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>tely by substantial market gains,\u201d <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/research.leutholdgroup.com\/section\/major-trend\/articles\/2022\/05\/24\/not-everyone-is-bearish.23620\" class=\"icon none\">reports chief investment officer Doug Ramsey<\/a>. The only really false indicator was March 2008 (oops), just heading into the global financial meltdown. But we\u2019re talking about an indicator that got you into the stock market at good moments on\u00a0nine\u00a0other occasions going back to the early 1990s \u2014 oh, and kept you out of the big bear market of 2000-3 until right at the end. Not bad. <\/p>\n<p>And then I came across this interesting data point from VerityData (formerly InsiderScore), another financial data company that tracks insider buys and sells. \u201cThe amount of weekly buyers reached the highest level since March 2020,\u201d they write. \u201c<em>We note that buying has largely been driven by insiders of small-cap companies. Russell 2000 sentiment is strongly positive but S&amp;P 500 sentiment is neutral.\u201d\u00a0<\/em>(My italics.)<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Insider stock purchases have usually been a good forward indicator of where businesses (and stock prices) are headed. Not always, of course.<\/p>\n<p>Note, please, that we are not talking about illegal insider buying based on major information that hasn\u2019t yet been disclosed to the market. We\u2019re talking about legal moves by company executives and directors to buy (or sell) stock when they are free to do so. They may not have major \u201cmarket sensitive\u201d information, but they know how business is looking.<\/p>\n<p>As ever, my job here is to give you information that helps you make informed investment decisions about your own retirement plans. And the focus is on long-term investing, not short term trading. <\/p>\n<p>As pointed out not long ago, many small-company stocks have already taken a much heavier beating than their bigger counterparts. And in the past they have usually been the better investment during a market slump, because they typically fall more when everyone is gloomy and rise more when everyone gets cheerful again.\u00a0Outsiders are gloomy, insiders are optimistic. That sounds like good news to me.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Brett Arends\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/brett-arends\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/BrettArends\",\"text\":\"@BrettArends\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:barends@marketwatch.com\",\"text\":\"barends@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Brett_Arends\"><\/span>Brett Arends<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"209_MW\" author-name=\"Brett Arends\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fguess-whos-buying-stocks-11653485050%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/p><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C05575-04D4-B545-7DBB-71D47219EAC0%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Brett Arends&#039;s ROI: Guess who\u2019s buying stocks?&#8221; Insider stock purchases have surged as share prices have plunged Excellent news. Not only is pretty much everyone on Wall Street bearish, but one group\u00a0of people have turned bullish \u2014 and they are the ones who really matter. We\u2019re talking about company insiders. Chief executives, board members and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":452760,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-551048\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-452759","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/452759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=452759"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/452759\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/452760"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=452759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=452759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=452759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}