A Perfect Strategy for THIS and EVERY Market

|May 1, 2024
Happy middle aged business man executive using mobile phone sitting outside office.

A Note From the Publisher: Markets have been unpredictable lately, to say the least. During April, the S&P 500 dropped nearly 5%. And, as Shah noted here on Friday, the Fed seems to have lost control of its ability to manipulate rates – which should only bring more volatility in the weeks to come.

But even in these conditions, there are still market truisms that can guide us toward profits. That’s why we’re breaking format (a little bit) and sharing some highly relevant thoughts from our good friend Alexander Green.

I worked with Alex for years during my previous life at The Oxford Club. (And because we have the same first name, I also had the honor of receiving many emails meant for him by mistake.) He taught me a lot. And the powerful strategy he outlines below isn’t just perfect for this market… it works in every market.

So, give it a read. And don’t forget to check out the links to all that we’ve published so far this week, at the bottom of this email.

Have a great week,

Alex Moschina, Publisher

In today’s world, the financial rewards for success in the stock market are so huge – and the competition for them is so intense – that an investor needs an edge.

Not just a perceived edge, but an actual one.

And the best edge, in my view, is to invest in the same stocks that the insiders are buying with their own money at current market prices.

Insiders have purchased stock in record numbers as of late. Yet the typical punter is doing the exact opposite.

Millions of investors have bailed out of stocks because they couldn’t take the pain anymore. (And, in doing so, they turned paper losses into actual losses.)

Corporate insiders couldn’t take the pain anymore either.

They couldn’t stand to see their companies’ shares selling at fire-sale levels without doing something about it.

And so they did…

Yet the spike in insider purchases coincided with investors pulling cash from their equity funds.

The punters are acting on emotion. (Fear, particularly.)

The insiders are acting on numbers, analysis and reason. And perhaps a different emotion. (Greed.)

Ride Their Coattails

One of the best strategies you can follow is to ride the coattails of knowledgeable insiders.

Why? Because they have access to all sorts of information, like…

  • The direction of sales since the last quarterly report
  • New products and services in development
  • Any expansion plans
  • Potential mergers and acquisitions
  • Whether the company has gained or lost any key customers
  • The status of outstanding litigation
  • Whether the company will put itself up for sale
  • Plans to take the company private.

And plenty of other good stuff that those of us on the outside looking in may not fully understand.

That’s why the SEC requires corporate insiders – officers, directors and beneficial owners – to file a Form 4 within two business days of any purchase or sale, detailing the number of shares bought, on what date and at what price.

Making this information public at least levels the playing field.

(You may not know why the insiders are buying. But at least you can see that they are.)

If you want to increase your stock market returns, you need to know what the insiders are doing.

Who’s Buying

Buying stocks that insiders are bailing out of or selling stocks that they are eagerly buying is a fundamental mistake.

Even when corporate fundamentals are checkered or poor, if the insiders are buying heavily it is generally a sign that the problems are temporary and the stock is set to press higher.

Indeed, plenty of academic studies have confirmed that stocks with heavy insider buying tend to outperform the broad market in the months that follow.

Do you know which stocks the insiders are piling into right now? You should.

Because those are the companies whose shares are most likely to perform best in the weeks and months ahead, no matter what the broad market does.

And who could be a better insider than someone working inside the company? That’s how I learned the No. 1 secret to successful investing nearly 30 years ago.

It was thanks to a random Costco manager I met while playing basketball.

I sat down with this guy in between games. And as I sat on the bench, I asked him a question.

His response changed my life.

I invite you to watch my full story right here… breaking down exactly how the No. 1 secret to successful investing works.

Note: I’ve managed hundreds of millions of dollars for some of the world’s richest investors…

Worked as a portfolio manager at one of the biggest financial institutions in the country, with $2.75 trillion in assets today…

And I helped build one of the world’s largest private financial research firms.

But the most pivotal moment in my entire career was the moment I discovered this secret.

Discover that secret here now.

Alexander Green
Alexander GreenChief Investment Strategist, The Oxford Club

Alexander Green is the Chief Investment Strategist of The Oxford Club and a primary contributor to Liberty Through Wealth. He has more than three decades of experience as an investment analyst, portfolio manager and financial writer. He directs a monthly financial newsletter, The Oxford Communiqué, along with three specialized trading services: The Insider Alert, The Momentum Alert and Oxford Microcap Trader. Alex is also the bestselling author of four books: The Gone Fishin’ Portfolio, The Secret of Shelter Island, Beyond Wealth and An Embarrassment of Riches.