Insider buying says a Santa Claus rally is on the way — here are 10 stocks they favor
Stocks should proceed higher as more people figure this out, leading to a Santa Claus rally later this month.
Corporate insiders confirm this view. They’ve stepped up buying considerably in the market weakness. What’s more they’re buying all the right groups – travel, retail, energy and materials, among others. These are the cyclical areas that’ll do the best as worries about growth recede, and insiders know it. I don’t see any hunkering down in defensive names like consumer staples.
There are lots of stock bargains because there’s been so much damage, even if narrower indexes like the S&P 500 SPX, -1.07% and the Dow Jones Industrial Average DJIA, -0.39% have hung tough, propped up by a few large names.
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