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Tue Aug 27, 2019, 01:25 PM

Insiders are selling stock like it's 2007

The leaders of Corporate America are cashing in their chips as doubts grow about the sustainability of the longest bull market in American history.

Corporate insiders have sold an average of $600 million of stock per day in August, according to TrimTabs Investment Research, which tracks stock market liquidity.

August is on track to be the fifth month of the year in which insider selling tops $10 billion. The only other times that has happened was 2006 and 2007, the period before the last bear market in stocks, TrimTabs said.

Investors often view insider buying and selling transactions performed by top executives, leading shareholders and directors as a signal of confidence. Even though the stock market is much larger than it was in 2007, so the $10 billion mark may not mean as much now as it did then, the acceleration of insiders heading for the exits could indicate concern about the challenges ahead, especially as the US-China trade war threatens to set off a recession.

"It signals a lack of confidence," said Winston Chua, an analyst at TrimTabs. "When insiders sell, it's a sign they believe valuations are high and it's a good time to be outside the market."

https://www.msn.com/en-us/money/topstocks/insiders-are-selling-stock-like-its-2007/ar-AAGmcrt?li=BBnbfcN&pfr=1

The stock market has been doing so great under my watch - Donny Dotard.

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Reply Insiders are selling stock like it's 2007 (Original post)
Yo_Mama_Been_Loggin Aug 27 OP
elleng Aug 27 #1
Johnny2X2X Aug 27 #2
empedocles Aug 27 #3
lindysalsagal Aug 27 #4
Fullduplexxx Aug 27 #5

Response to Yo_Mama_Been_Loggin (Original post)

Tue Aug 27, 2019, 01:39 PM

1. Looks like more than 'insiders.'

S&P 500
-0.15%
Dow
-0.25%

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Response to Yo_Mama_Been_Loggin (Original post)

Tue Aug 27, 2019, 01:39 PM

2. Too many signs to continue to ignore

We're going into a recession, the only questions left are when and how deep.

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Response to Yo_Mama_Been_Loggin (Original post)

Tue Aug 27, 2019, 02:28 PM

3. In larger context, the $165.7 billion in corporate buybacks for the 2nd quarter of 2019,

are modest compared to the 433.6 billion in buybacks for the 2nd quarter of 2018.

Insiders, who have profited enormously with their stock options, etc., are now leading the charge out of the market - and are an indicator.

Insider's corporations have boosted the markets to record highs - and a huge booster to support those [inflated?] highs.

Financial markets are quite vulnerable.

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Response to Yo_Mama_Been_Loggin (Original post)

Tue Aug 27, 2019, 03:03 PM

4. Not my problem: I don't buy stocks. Ever. So I don't have to worry.

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Response to lindysalsagal (Reply #4)

Tue Aug 27, 2019, 03:11 PM

5. I do and my pension is in it

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