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Only Delusional Stockbrokers Could Love This Market
Submitted by Bill Bonner via The Acting-Man blog,
Corporate Insiders Jump Ship
Corporate insiders are selling 22 times more stock than they are buying. From Fox Business:
“What we’re seeing now is a dramatic reversal in that sentiment,” says David Coleman, editor of Vickers Weekly Insider Report, whose firm tracks buying and selling of all publicly traded companies. “The trend has reversed from what had been historically high levels of buying relative to selling.”
[…]
TrimTabs Investment Research reports that insiders at public companies have sold $2.6 billion worth of shares so far in June. That’s 22 times more than the $120 million in stock they have bought. […] TrimTabs’s 60-day total of insider buying has fallen to the lowest level since December 2004.”
What do corporate insiders see coming?
From Bloomberg:
“Last week’s news of the weakest hiring since December 2013 rounded off a quarter in which retail sales and capital goods orders all pointed to a first quarter flop. That leaves JPMorgan Chase & Co. estimating growth was just 0.6%.”
Zero point six percent is optimistic. Our friend and economist Richard Duncan puts the first-quarter growth figure at 0.1%. He says the US economy may already be in recession.
SPX only insider buy/sell ratio – as can be seen, insiders like to buy big corrections. They are singularly disinclined to buy right now.
A Delusional Market
We’ll wait to find out. But it’s not as though we have to hold our breath. A stock market sell-off and a recession are coming. They always do. Not every day at the beach is going to be sunny and bright. Even in California, it’s got to rain sometime.
Market corrections are even more certain. People make mistakes. They pay too much. They buy the wrong things. Profits go down. Businesses go broke. Stuff happens. What kind of world would it be otherwise?
Imagine if bad restaurants never went out of business … worthless smart phone app makers never went bust … every girl was homecoming queen … and every war was won – by both sides.
Cartoon by: Walt Handelsman
We’ll leave it to you to think about that in the dark of night. For our money, we’ll assume that things will not always work out as planned. We will bet, too, that a stock market that is worth more relative to GDP than at any point in history bar the dot-com bubble is suitable only to delusional stockbrokers.
Market cap to GDP – prior to major bull markets, it tends to be in the low 30s – normal bull market peaks tended to be recorded in the 80s. Since the late 1990s, insanity has been the order of the day. Most of us don’t realize it, because we have become inured to it. But it is still insane – click to enlarge.
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If you're a jew stockbroker... Your money counterfeitting 'QE' life is about to end... [Until it ISN't ~ & grandmama Matzo Ball bails your ass out with freshly printed jooBUX ~ for the GOOD of ALL HUMANITY]...
I could give you a great stock tip, stay away from any stock that has a negative EPS, including AMZN!
-Matt
http://www.mrdryout.com
An accurate assessment of the situation there TM. Thumbs up.
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
Get a life moron (aka Thirst Mutilator), you are a nothing more than a simpleton racist fool.
News falsh, idiot: not every Jew lives in nyc and works for gs. sthfu.
And you know, those brokers are happy to charge you a 1.5%-2.0% fee - on the way up and all the way down.
Those "retirement" commercials with the ever-growing dominoes and strings never show the big dominoes getting carried off by Wall Street and you back to the tiny one, or your string getting cut in half.
What are you going to do, call the S.E.C. or the JustUs Department?
I'm looking forward to the 'nobody could have seen this coming' sob stories.......
"Relax, my broker says the economy will bounce back"
"I AM your broker"
Was that Tyler, just before he started ZH? ;-)
p.s. Did you know that other people were broke and poor, just before they made it big? E.g. JK Rowling (Harry Potter author), Rush Limbaugh...
pps. [gasp] Sudden realization: We'll NEVER get rich or famous, by blogging on ZH.
Imagine if all of us stopped posting on the internet, sat down, and wrote a book?
Whatchu got against treez?
There would not be enough ink.
Your book would be written in blood.
"Imagine if every coffee-house-aspiring-novelist was JK Rowling."
Imagine what?
JK ROWLING - GENIUS OR FRAUD?
http://www.wattpad.com/20904993-jk-rowling-genius-or-fraud
I don't want to be rich or famous, just happy, enough income for a roof, clothing and food and left alone.
Water, Power, Mandatory Health insurance, Life insurance, Auto insurance. Home insurance, kids need glasses, Braces, the car broke down. Dog ate the drapes, cat destroyed the blinds, storm damaged the roof (insurance will fix the roof but not the water damage), Hurt my back gotta pay someone to mow the lawn.
it never stops
Traveling Wilburys - End Of The Line
http://www.youtube.com/watch?v=cwqhdRs4jyA (3:27)
This will go on till they are ready to "chip" us all.
Then it won't and they roll out the solution.
All the insiders love this market. For them its great.
have sold $2.6 billion worth of shares so far in June. That’s 22 times more than
?