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(David Duprey/AP)

Insiders much more upbeat on Canadian stocks than American

Will Canadian stocks reverse last year’s trend and outperform U.S. equities in 2014?

It’s a question many are pondering as the year gets underway. Corporate insider activity appears to suggest it may be best to place your bets on stocks that trade north of the 49th parallel.

The U.S. indicator at INK Research, which monitors buying and selling of shares by officers and executives within their own companies, hit a low of 22 per cent in early November, at which point there were almost five U.S. stocks with key insider selling for every one with buying. It’s been hovering just above that level ever since, a clear signal that insiders think the U.S. stock market is overvalued.