Peak insider buying suggests solid support for materials stocks
In a bullish development for Canadian Basic Materials stocks, our sector indicator peaked late last month. Generally, indicator peaks which reflect peak insider buying often take place around share price lows.
Gold and more recently lumber have been moving up, helping to validate insider optimism in the current environment. While many commodities in the group including copper have yet to reverse course, insiders seem to be betting that it is only a matter of time.
More generally, strong insider buying in Basic Materials suggests that now is a good time for investors who are underweight Canadian stocks in their equity portfolios to considering increasing exposure.
To see which Basic Materials stocks insiders are buying, read our sector report available here after logging in.