In August, the volume of personally owned stock sold by corporate executives reached its highest level since 2015, followed by a 10% decline in the S&P 500 in September.
Today on the Brief:
- Initial U.S. jobless claims up to 870,000
- Partial lockdowns begin in earnest in Europe and Israel
- The global demand for American stocks
Our main discussion: Did corporate insiders perfectly time the market top?
August saw the largest volume of insider selling since 2015, with more than 1,000 corporate officers offloading $6.7 billion in stock. Subsequently, the market has seen a 10% decline since the S&P 500 all time high of Sept. 2. What’s more, according to new statistics, insider selling is happening at the fastest pace since 2012.
The question is: What do these executives know that the rest of the market doesn’t?
See also: Violent Reflexivity: Why Market Movements Are More Aggressive Than Ever, Feat. Corey Hoffstein
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