The Pragmatic Capitalist takes a look at the latest aggregate insider buying/selling numbers. And it’s not pretty:
The latest insider buying and selling statistics continue to show a vote of no confidence from corporate insiders. In the last two weeks insiders purchased just over $17MM versus sales of over $700MM. All of this makes you wonder what corporate insiders are seeing that the investment community isn’t. The following chart from insidercow shows just how skewed the data has been in recent months:
Of course, this has probably been the worst “tell” throughout the rally. If you went by this, and figured insiders must know something, you’d have missed most of the gains. While insiders might have a better view of business prospects than general investors, there’s no good reason to assume they’re any better at predicting stock prices. If anything, it speaks to the disconnect between the market, and the actual economy (and outlook), adding fuel to the argument that the rally is still basically liquidity-driven, rather than one based on fundamentals.
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