Directors' dealings: a signal for market timing

When the market unfairly affects some share prices, company directors know that is the time to buy. By following their lead, investors can better predict market movements

At a time when market volatility has dented many tried and trusted investment strategies, demand for investments which provide access to risk-averse returns has rarely been stronger. The concept of investments made on the basis of tracking certain types of stock market trades of company directors is one such option. It is commonly accepted that directors have the most detailed knowledge of their companies as they have access to all company information on a day to day basis. They are, therefore, in the best position to judge whether the market has correctly valued the company's shares. If ...