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
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.