Patience Is KEY In a Market Downturn…
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Well, long time listeners of the show know one of my favorite lines of all time, financial lines from JP Morgan. When stocks are tanking, when there’s a bear market, when there’s a recession, stocks return to their rightful owners. Woo, bold statement. He’s basically saying, we own you. We’re smarter than you. We’re smart money. And he’s not.
Guess who’s buying stocks now? Yeah, insiders. That’s right. Corporate insiders can’t buy stocks fast enough. Basically, all corporate insiders are scooping up shares of their own company at a pace we haven’t seen in almost two years.
No less than 180 corporate insiders purchased their own stock within the past two weeks. Again, lot of people, they get caught in a negative feedback loop. And I talk about this all the time and I get it. You’re bombarded with news, you’re bombarded with all this negative information all the time. I understand it. I understand it. But people who run their own companies,
They know this and listen to a lot of these corporate insiders. They’ll highlight when they’re selling. They hire some lot of times when corporate insiders and people have major stock position sell they have automatically automatic sell programs already. Put together in their financial plans in order to diversify. I know we do this for our clients. It’s a smart strategy to have, but to actually go out and purchase in the open market. Mind you, most of these corporate insiders are getting.
stock grants anyway. So they obviously see a bit of a disconnect. Again, your timeframe is always what’s important. I don’t know when this chaos is going to end. I don’t. I don’t. Like I said, a couple tweets later, this whole thing could be over. Do I think it’s going to be anytime soon? No. No, I don’t. I think it’s going to be a bit prolonged.
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And again, I think we could have a rip roar in second half of the year. The thing is you gotta be smart. Gotta be smart, you know, like I talk about when it comes to our process, patience and courage. Patience and courage is oftentimes your best friend as an investor. WaxDog on wallstreet.com.
