Foster Group

Yearning for any bit of positive news within the madness that is Wall Street these days?  Ed Green and Kent Kramer have been providing excellent perspective on the recent volatility, so if you have yet to read their contributions, check them out (link).

Here's a not-so-well-publicized anecdote that may help you avoid further bouts of hyperventilation…

Seems many corporate executives are recognizing opportunity amid the recent market freefall.  As of mid-August, these higher-ups have individually purchased, or increased corporate buybacks of, their own company’s stock to the tune of $900 million. That is the most for a single month since insiders bought $1 billion in stock in March 2009, "ironically” coinciding with the bottom of the last bear market. Thirty-five insiders thus far have each purchased in excess of $1 million of their company’s stock, and U.S. companies have already bought back more in share value this year (over $300 billion) than they did for all of 2010.

If you were an owner or executive of a company and lacked complete confidence that its share price would return to previous levels, would you have any reason to buy back shares now held by the public?  Since you would theoretically be as knowledgeable as anyone concerning the strength and viability of your organization both short- and long-term, this would be a rather informed buying decision reflecting some positive intuition.

Keep this tidbit in mind to add some balance among the 359 other "newsworthy" headlines you're sure to see and hear this week, suggesting that doom and gloom is here to stay.