Record Insider Selloff on Wall St.: Is the Big Bubble Ready to Burst?
NEW YORK – September 28, 2018
Bizarre things are happening right now in U.S. markets. It’s been 10 years since the recession and things are a little too quiet, at least on the surface. Not long ago we wrote how U.S. home sellers were slashing prices at the highest rate in 8 years — now corporate insiders are quietly selling off shares at the fastest rate in 10 years. Executive officers and board members are making moves to liquidate, and fast. Why are insiders so quick to cash out now? Do they know something the others don't?
Insiders at U.S. companies dumped $5.7 billion in stock this month alone, the highest in any September over the past decade, according to an analysis of regulatory filings by TrimTabs Investment Research. No one can be blamed for taking advantage of the over-inflated stock prices we see in the market today. But, stocks have been soaring for several years now. Why the sudden crazy rush for the exit?
It's a trend, according to TrimTabs. August saw the fastest sell off of insider shares in the past decade as well. Is it possible that corporate insiders think the market is about to collapse? Are we at the end of the credit cycle that began in 2008? Are they preparing for a dramatic turn in global economics, or global politics? What do they see so clearly that we can’t?
On Wall Street, actions speak louder than words, and corporate insiders are saying something loud and clear by selling off so much of their ownership in America Inc.
So, what are they preparing for? What do they know that we don’t?