Back in 2008, bond fund giant PIMCO set the bar low for the next five years, predicting a "new normal" marked by lower returns and slower economic growth. As stocks struggled for the first half of 2010 and the spring slump stretched on into summer, it appeared that the gloomy forecast might have been right.
But there's a vocal faction of investors who would beg to differ. Ken Fisher, CEO of Fisher Investments, calls the idea of a new normal "idiotic" -- his word, not ours. Fisher thinks the next decade could be the 1990s all over again in terms of prosperity. And Mad Money's Jim Cramer isn't buying it either, calling the start of a "raging" bull market that's just getting going.
When you consider the strong comeback stocks staged from September on, the pittance that bonds are yielding and the government's continued measures to promote market liquidity, it seems that the optimists may be onto something. Even PIMCO would appear to have changed its tune, boosting their 2011 economic growth projection just last week.
We've compiled a list of stocks that ended 2010 on a strong note, hitting new 52-week highs during recent sessions -- and insiders don't think these rallies are running out of steam. To the contrary, they're using their own money to buy the stock of their employers -- a good sign, since they probably know more about their companies than anyone else.
These insiders seem to be rejecting the idea of a "new normal" -- do you agree? (Click here to access free, interactive tools to analyze these ideas.)
|
Company |
Performance (Year) |
Insider Transactions |
|---|---|---|
| AutoNation (NYSE: AN) |
46.28% |
Insiders like Cascade Investments (10% Owner), David Edelson (Director) and Michael Larson (Director) collectively bought $3.58M worth of stocks between 10/29-11/3 |
| Brown & Brown (NYSE: BRO) |
36.63% |
Michael Riordan (Officer) bought $75K worth of stock on 11/24 |
| CA Technologies (NYSE: CA) |
7.32% |
Arthur Weinbach (Director) bought $395,564 worth of stock on 8/5 |
| Fastenal Co. (Nasdaq: FAST) |
52.47% |
Michael Ancius (Director) bought $14.4K worth of stock on 8/13 |
| W.W. Grainger (NYSE: GWW) |
38.91% |
Insiders like Ann Hailey (Director), Michael James Roberts (Director) and Stuart Levenick (Director) collectively bought $200.6K worth of stock between 11/10-11/18 |
| Honeywell International (NYSE: HON) |
30.77% |
George Paz (Director) bought $49.6K worth of stock on 11/22 |
| Principal Financial Group (NYSE: PFG) |
38.55% |
Insiders like Sandra Helton (Director) and James Woodrum (Director) collectively bought $25.2K worth of stock between 8/11-12/3 |
Interactive Chart: Press Play to see how the market caps for all the stocks mentioned above have changed over the last two years.
Kapitall's Eben Esterhuizen and Alicia Sellitti do not own shares of any companies mentioned.
