This little-known strategy allows you to follow the ‘smart money’
From Anthony Summers, Editor, Oxford Club:
Among us lives an elite group who safeguard some of the most explosive opportunities in the market…
At first, you may think I’m talking about a conspiracy of sorts.
Perhaps I am – considering that these high-ranking officials govern the most powerful industries in the world.
But unlike the Bilderberg Group, the illuminati or whatever other mysterious cabal conspiracy theorists fear, the activities of this group are not wholly hidden.
In fact, we can legally track their activities… and even profit from them.
Just who are these powerful men and women?
If you’ve guessed that they’re corporate insiders, you’re right.
It’s an ominous way of talking about them, but it’s important to acknowledge that insiders are not ordinary market participants.
They have rare insights and foreknowledge that allow them to “front run” – legally – some of the biggest market events.
That’s why corporate insiders are called “smart money.”
Corporate insiders know much more than you – or any other outsider – about their businesses.
They know every scandal before it leaks… every earnings report before it’s released… and every breakthrough before it’s announced.
When these insiders make an investment, it’s an informed investment. And while not all insider trades are successful, they can still serve as a bullish or bearish signal in your own investing.
By law, these insiders must disclose their buying and selling activity.
That means we know when insiders make money moves on their own companies. And we can monitor their success.
But when you realize the immense power of monitoring insider moves, you might also find out just how explosive the profit potential can be.
Corporate Prophets Become Trading Profits
The biotech and pharmaceutical space has always been rife with explosive opportunities… But it takes sharp instincts and in-depth market knowledge to invest successfully.
It takes someone like Dr. Robert Janssen, chief medical officer and vice president of clinical development at Dynavax Technologies Corp. (DVAX).
Janssen has had an impressive career in his industry. Prior to joining Dynavax, he spent two years at Gilead Sciences Inc. (GILD) and more than 23 years at the Centers for Disease Control and Prevention. He has also published more than 130 articles in his field.
He is a textbook example of smart money. So when it was reported that he made a big money move into his company in January of this year, smart money followers watched.
Then, like the fulfillment of a prophecy, the stock spiked…
… Delivering a 480% gain in just eight months.
By following the smart money, you could have been tipped off to one of the best-performing stocks of this year.
And it’s not just from individual insiders. Sometimes smart money comes from institutional buyers too.
Take a look at another insider that could have led you to additional big gains in AVEO Pharmaceuticals Inc. (AVEO).
NEA Management is one of AVEO’s largest shareholders. In March, it added a whopping $11.3 million worth of shares to its AVEO holdings…
Then the stock shot up sixfold…
Once again, following the smart money on this trade could have led to a 517% windfall in very little time. And there are many, many more examples like this throughout the market.
But the gains that follow this legal front-running by corporate insiders shouldn’t surprise you.
As I’ve previously shown, academic research has now proven that insiders take advantage of their connections to make big money before you ever get to hear about it.
On average, trades that occur before major company announcements allow insiders to pocket about $3,600 for every $10,000 they invest…
Sometimes in less than a month.
Is it unfair? Maybe. But it’s also how the world works.
So rather than pout about the privileges of these corporate elites, I say join ’em by following the smart money.
P.S. Oxford Club chief investment strategist Alexander Green just released an in-depth presentation on how you can lock in up to 258% every 37 days on average by tracking these kinds of insider buys. Watch the video right here.