Making sense of the markets is the overriding task for investors, at all times, but in today’s environment it’s more urgent than ever. It’s not so much the downward trend on Wall Street, with the S&P 500 down 19% year-to-date, but the whirl of conflicting headwinds that make up the background. The June jobs numbers were described as strong – a positive factor – but inflation remains intractably high, and the Federal Reserve, to combat inflation, has switched its policy to increasing interest rates – which brings with it recessionary pressures. GDP contracted in Q1 of this year, and economists are debating whether or not the same happened in Q2; if it did, it would mean that a recession is already on us.
All in all, it’s not an easy economic picture to understand, and that makes picking the right investments both more difficult and more important.
But there are ways to cut through the confusion. Retail investors can find and follow the experts –Wall Street analysts, legendary investors, or corporate insiders – whose positions and knowledge give them a better line on the ins and outs of stock performance.
Of these experts, the insiders are probably the least well understood, but also possibly the best to follow. They are upper-level company officers and their positions give them two attributes that always impact trading. First, they know the inner workings of their company, and second, they are responsible for results. They don’t trade their own shares lightly, and when they do trade them, especially in bulk, investors should take note.
With this in mind, we’ve opened up the TipRanks database to pull the latest scoop on two stocks that are showing recent signs of strong insider buys, purchases that support the bullish thesis in a bearish time. Let’s dive in.
NextEra Energy (NEE)
We’ll start in the energy sector, with NextEra Energy, a leader among the world’s electric utilities. Based in Juno Beach, Florida, NextEra boasts a combination of high current capacity and huge expansion plans. The company has approximately 45,500 megawatts capacity…