#INVESTORS ALERT: Massive #Insider Sales Ring The Bell For Market Bottom

Last week alone, top executives from Salesforce (CRM), Slack (WORK), Chipotle (CMG), Visa (V)and Home Depot (HD) all sold shares, according to OpenInsider, a site that tracks insider stock sales.

Insiders are selling stock like it's 2007

By Matt Egan, CNN Business

New York (CNN Business)The leaders of Corporate America are cashing in their chips as doubts grow about the sustainability of the longest bull market in American history.

Corporate insiders have sold an average of $600 million of stock per day in August, according to TrimTabs Investment Research, which tracks stock market liquidity.

August is on track to be the fifth month of the year in which insider selling tops $10 billion. The only other times that has happened was 2006 and 2007, the period before the last bear market in stocks, TrimTabs said.

Investors often view insider buying and selling — transactions performed by top executives, leading shareholders and directors — as a signal of confidence. Even though the stock market is much larger than it was in 2007, so the $10 billion mark may not mean as much now as it did then, the acceleration of insiders heading for the exits could indicate concern about the challenges ahead, especially as the US-China trade war threatens to set off a recession.

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How Long Can #Markets Climb A Wall of #Worries?

"Little wonder investors are so complacent. Wall Street hit a new record on Friday with all eyes on US Federal Reserve chief Jerome Powell, who this week will be — guess what? 

Cutting interest rates."

 

Four flashpoints that may unsettle booming stock markets in the coming year 

In 2008, the financial system teetered on the brink of collapse. It was a crisis triggered by a catastrophic debt build-up in America's housing market that, once it burst, infected the US and the global banking system.

Ultimately, the contagion and fear was contained. But the underlying problems were never really addressed, let alone solved. They were merely papered over with vast amounts of extra debt created out of thin air.

Remarkably, central banks since then have managed to avoid yet another debt-inspired meltdown by sending interest rates to zero and then negative territory. 

What they now most fear is another financial market implosion that could spill over and cripple the real economy. But as they've demonstrated time and again, they will stop at nothing to avoid one.

How long can this state of suspended animation continue, where supposedly free markets are so easily manipulated? Investors appear to have become lulled into believing it will continue indefinitely.

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