Buy The Dip?
Not that kind of a dip, the "experts" will often say to buy into the investment after a "Dip". Many times this makes sense, and then there are times when this will destroy wealth.
Markets have been manipulated by the Federal Reserve for years through cheap money, and the buying assets thereby causing asset prices to rise at a rate not supportable by value.
Longest Bull Market in History
Let's put some perspective on the line here. Investopedia wrote in October of 2019:
Market Milestones as the Bull Market Turns 10
"The big question now, of course, is whether this 10-year rally will continue. Bull markets end with recessions, and while we've seen many bumps on the road to where we are now, the stock market has managed to recover (at least eventually) each and every time. There will always be serious risk factors and fears that pervade markets".
In other words, the bull market was well beyond norms in October of 2019. If history is any teacher, the longer the market runs hot, the longer it takes for the dead wood to be weeded out of the market place.
What You Can Learn From Insider Trading
It isn't a coincidence that corporate executives seem to always buy and sell at the right times. After all, the CEOs and CFOs of the world have access to every bit of company information you could ever want. However, the fact that company executives have unique insights doesn't mean that individual investors are always left in the dark. Insider trading data is out there for all who want to use it. This article will discuss what insider trading is, how we can understand insider trading, and where to find the relevant data.
One of the greatest investors of all time, Peter Lynch, was noted as saying that "insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise".
According to Zacks Research, just since the beginning of this year, officers and directors of Southern Company have sold a total of 794,322 shares of company stock.
Let's assume that those individuals did not need the money, but merely sold that much company stock because they felt it made financial sense.
This would infer that they made smart decisions about their own money, and perhaps you should follow their lead.