Insiders Buying

During April, insiders bought their own stock more heavily than we have seen in a long time. The same probably occurred in May too, although we have not seen the final numbers yet. Insiders sell their own stock for many reasons but buy for only one – they believe they will make money. Insider buying is therefore a good indicator of value. After all, who knows more about the prospects of any company than those closest to its operations?

Along with improving technicals, the outlook for the U.S. stock market is looking up. A good summer rally may have already begun. It won’t be straight up but should work higher. Good things are happening. Inflation has probably peaked. Supply chains are untangling, and businesses are managing through their individual challenges. Two weeks ago, the Bull wrote a blog entitled “The Sun also Rises,” and so it is! Stay steady my friends.