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Insiders Exit U.s. Stocks At Fastest Pace In Two Years As Market Rallies

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http://www.bloomberg.com/apps/news?pid=206...id=aflROe0Pe0QM

June 22 (Bloomberg) -- Executives at U.S. companies are taking advantage of the biggest stock-market rally in 71 years to sell their shares at the fastest pace since credit markets started to seize up two years ago.

Insiders of Standard & Poor’s 500 Index companies were net sellers for 14 straight weeks as the gauge rose 36 percent, data compiled by InsiderScore.com show. Amgen Inc. Chairman and Chief Executive Officer Kevin Sharer and five other officials sold $8.2 million of stock. Christopher Donahue, the CEO of Federated Investors Inc., and his brother, Chief Financial Officer Thomas Donahue, offered the most in three years.

Sales by CEOs, directors and senior officers have accelerated to the highest level since June 2007, two months before credit markets froze, as the S&P 500 rebounded from its 12-year low in March. The increase is making investors more skittish because executives presumably have the best information about their companies’ prospects.

“If insiders are selling into the rally, that shows they don’t expect their business to be able to support current stock- price levels,†said Joseph Keating, the chief investment officer of Raleigh, North Carolina-based RBC Bank, the unit of Royal Bank of Canada that oversees $33 billion in client assets. “They’re taking advantage of this bounce and selling into it.â€

Green shoots story way overdone - HPCers have been saying this for a while.

However, in the meantime:

$ up

oil down

gold down

Which goes against the hyperinflation-is-coming views of most HPCers ;)

Discuss.

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http://www.bloomberg.com/apps/news?pid=206...id=aflROe0Pe0QM

Green shoots story way overdone - HPCers have been saying this for a while.

However, in the meantime:

$ up

oil down

gold down

Which goes against the hyperinflation-is-coming views of most HPCers ;)

Discuss.

so why are idiotic traders still buying stock of companies that even their own directors don't want??

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http://www.bloomberg.com/apps/news?pid=206...id=aflROe0Pe0QM

Green shoots story way overdone - HPCers have been saying this for a while.

However, in the meantime:

$ up

oil down

gold down

Which goes against the hyperinflation-is-coming views of most HPCers ;)

Discuss.

Treasuries were up as well. Doesn't mean there won't be a bond collapse.

Just that there wasn't one today.

You think the Euro is doomed IIRC.

Can you explain how you are obviously wrong, because it didn't happen today? ;)

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You think the Euro is doomed IIRC.

Can you explain how you are obviously wrong, because it didn't happen today? ;)

Yes, I do think the Euro is overvalued - thanks for reading my posts ;)

This thread however is about the inlation/deflation debate.

I was just pointing out that the market is leaning towards the deflation story at the mo.

BTW Bob, I didn't have you down as one of the hyperinflationists ?

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How do you know that most HPCers think this?

Most of the posts I've been reading recently seem to indicate that.

There were a couple of polls too, IIRC.

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Yes, I do think the Euro is overvalued - thanks for reading my posts ;)

This thread however is about the inlation/deflation debate.

Aren't they all these days?

I just got the impression that you might have been teasing a little based on 1 day's movements, so was (hopefully gently) doing the same. ;)

BTW Bob, I didn't have you down as one of the hyperinflationists ?

And you were right not to.

I can envisage a scenario where politically they will decide just keep printing, regardless, so I don't rule it out. But I am not an expert on anything. :)

Incidentally, is this index (for want of a better word) seen to have any predictive capability of market movement? (Question for anyone really).

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Guest spp

About time we got some action!

It's going to be deflation to start...the insane amount of credit is gone.

The inflation will come from a currency crisis.

The dollar will lose it's reserve currency status...exposing the countries who are up to their necks in debt for what they are.

Not sure if you've ever heard of this guy but he know's is $hit IMO.

http://www.drschoon.com/articles.asp

"The road to hell is not a straight line and neither is the path towards the next deflationary depression. The recent stock market rally is a case in point. Hope springs eternal until it doesn’t.

The recent stock market rebound is like a tan on a dying man.

The real conundrum faced by central bankers is how to convince investors that the economy is improving when it isn’t. A slowing descent is not the same as ascending although many investors are willing to bet their last dollar that it might be so. Hopelessness is an indicator that another Great Depression has arrived. The recent rally is an indicator that it is not yet here. When it does arrive, stock market rallies will be a memory of times past, times when it was believed that bubbles were real and that markets could be manipulated ad infinitum without consequence."

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so why are idiotic traders still buying stock of companies that even their own directors don't want??

You probably have a very simplistic understanding of why securities do trade, i.e. market microstructure. I would believe that the recent market action, a bear rally in all likelihood, caught many market professionals (fast money accounts such as market makers carrying stock, proprietary traders, hedge funds), to whom you probably refer to as idiots, completely off-guard. When it started back in March, it was rather obvious many dealers were very light on stock if not short and scrambling to cover as the true drivers of the market kept buying at the time causing reversal in the perception of fundamentals in many market participants . For example, low money market and deposit rates have a very interesting effect on many private banking clients. Another example: plenty of anecdotal evidence on this site that many in the UK could not think of anything better than putting the money into real estate. Nice conspiracy by the BoE & Treasury: artifically lower cost of debt and savings rates and watch some people losing the nerve and piling into real estate... Of course, they might turn out right if there isn't a collapse in M4 down the line....

Edited by Meerkat

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Gotta love naked Capitalism...

Bull trap coming to an end....

Next leg down about to start...

Thing is, it's so blinkin' obvious, I'm suspicious. It can't be that obvious can it? <_<

(although I'm also short S&P & FTSE :), but tempted to do more )

Edited by mikthe20

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Thing is, it's so blinkin' obvious, I'm suspicious. It can't be that obvious can it? <_<

(although I'm also short S&P & FTSE :), but tempted to do more )

+1

I'm short FTSE at 4430, S&P at 942, and Oil at $69 (though dollar/pound exchange rate has eaten in a bit) as per previous posts. Only surprise is that it has taken so long for the reversal. My hedge of long Glaxo and Vodafone are wobbling a little after a good gain last week - not sure whether to cash in or see if they hold as fund managers buy them for relative safety? They have 6% + yield so might just keep them up my jumper for a couple of years.

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It appears those in the know are profit taking.

It appears that this bear market is about to head downwards again, unless someone can find some happy clappy news for everyone.

and now its on Doomberg so we are all in the know, things get curiouser and curiouser.

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so why are idiotic traders still buying stock of companies that even their own directors don't want??

Simple, really.

They are idiots.

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Simple, really.

They are idiots.

They think they know something that the directors of those companies do not - the arrogance of the masters of the universe!

Wouldn't it be great if some aliens mother-feckers turned up looking for the masters of the universe they have been hearing so much about and decide to zap all the bw ankers!?

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http://www.bloomberg.com/apps/news?pid=206...id=aflROe0Pe0QM

Green shoots story way overdone - HPCers have been saying this for a while.

However, in the meantime:

$ up

oil down

gold down

Which goes against the hyperinflation-is-coming views of most HPCers ;)

Discuss.

i'm not typing it all again but why did a big google page just pop up to say the link is broken when i tried to post on HPC.

Google has to much power and i'm dammed if i want them diverting my posts.

Edited by Justice

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