economy watch: Insider selling highest in over 30 years

[maggrwaggr]

This is bad news for the economy. Insider selling hasn't been this high since 1971.

Time to dump those stocks.

Here's the story (gotta scroll down a bit):

http://moneycentral.msn.com/content/CNBCTV/Articles/Dispatches/P66026.asp

[radwriter0555]

1. Interesting. Since the economic prognosticators are predicting a record

dump in January.

Could be the precursor.

[Gin]

5. why the dump in January?

gin

[Frodo]

10. A couple possible reasons

1) January is often a "strong" month due to annual 401(k) contributions early in the month. Lots of funds have to buy to handle the inflow. Perfect time to get out if you are bearish in the mid-term

2) Capital gains. The market has actually been up significantly this year. No point in paying taxes in 2003 that can be put off till 2004 by waiting a bit (assuming you don't expect a crash before 1/2004).

The real question is "who is predicting this sell-off"? I have seen no such news.

[SpiralHawk]

2. Attention all Rats: Time to Abandon the SS Smirky

He's going down and he's taking America under with him.

Mayday. Mayday. Mayday.

[goforit]

21. SOS..........................(god help us all)

10...9...8...7...6...5...4...3...2....

[KayLaw]

3. Fascinating

I'd heard about most of the selling before but not that it became so much worse last week. Thanks for your post.

[Wwagsthedog]

4. Note that gold and silver prices shot up this morning. Not a good sign.

n/t

[monkeyboy]

6. My favorite part:

Dow component Merck (MRK, news, msgs) scrapped clinical trials of a high-profile depression treatment
today, another blow to the company’s product pipeline.


The CEO of Merck could not respond to questions. He's too depressed to come to the phone. ;-)

[Spazito]

7. Actually it has never been this high...

according to this quote:

"We have not seen a level of pessimism of this magnitude since we started tracking corporate insider trading activity in 1971," says Vickers Insider Weekly, an Argus newsletter that tracks insider activity.

They only started tracking in 1971 so one could say this sell off is the worst ever! Geez.

[shirlden]

8. Those in the know are saying no go

on the economy. Why am I not surprised??
Great catch, BTW. Interesting !!

:kick:

[ozone_man]

9. Nobody knows what's coming better than insiders.

They are selling out to "bag holders", small investors, people with their 401ks invested in mutual funds, etc. It sure doesn't look like the end of a bear market to me.

"Insider selling by executives and directors of shares in their own companies outweighed buying by an enormous 10 to one. "We have not seen a level of pessimism of this magnitude since we started tracking corporate insider trading activity in 1971," says Vickers Insider Weekly, an Argus newsletter that tracks insider activity."

[tom_paine]

11. What a surprise

coinciding as it does with the shutdown of the Ameircan Experiment of checks and balances.

[Fovea]

12. Roll up the backdrop of Beverly Hills

The Sucker Recovery is over.

[loudsue]

13. I wonder if they're buying "Puts", as well....

that would be interesting. Do any of the stock jockeys have a link to how many market "Puts" are going into the hopper??

:shrug: Might as well!

:kick:

[hang a left]

14. I have been searching for about 20 minutes trying to find a thread

that was posted early last week. An analyst (milken?) from Washington State is telling his clients to dump. I can't find it. Can anyone help me?

[Maeve]

18. Could it have been related to this article on Warren Buffett?

http://www.msnbc.com/news/985405.asp

[Metrix]

23. Michael Belkin

http://moneycentral.msn.com/content/P62345.asp
http://moneycentral.msn.com/content/p58388.asp

[blue agave]

15. What about metal stocks ?

Would equities in precious metal mining companies be a safe bet in this climate ?

[54anickel]

20. They have just jumped up considerably

Check out the Daily Stock Market Watch here on DU. Very informative.

[RedEarth]

16. Not a good sign

I guess the insiders don't believe the spin coming out of the white house. I read where some other investor(Templeton, perhaps) had said our economy might be heading for a big fall. Hope it's not true. My portfolio can't take many more big hits.

[okieinpain]

17. I hate bush, but this economy needs to pick up. I hope this is

not true.

[Jacobin]

19. I emailed this to a repuke friend. Wanna see his response?

"I suspect much of it is not what the author has suggested. For the past 3 to 4 years, the only buyers were insiders and their families and a very few people like me. Now the insiders are selling to buy what insiders prefer to buy, yachts, villas on the Costa del sol and such. This will probably be good news for the world economy as all that cash that was on the side propping up the price in a down market, is now free to consume goods and services."

Weird thinking or what?


It means the stock market is about to tank!!

[54anickel]

22. Geez, I swear I used to work for this guy. So he also say that

was is good for the economy?