Financial executives continue to massively sell shares
September 13, 2009
A few months ago we reported that financial executives, directors and insiders masse began to sell their shares - and as hopeful as the media responded to the rising markets again. This trend is growing stronger every month, and now it seems suspiciously like the members of the financial elite almost panicked dumping their own shares to be. Could it perhaps gigantic wrong? Media reports that since the "recession (almost) in order" because the markets for some months back rebound? Or maybe they know more, and have perhaps the voor'kennis of this site also often announced upcoming super crash?
The equity markets experienced a recovery since the historic low point last March. The S & P 500 index rose 55%, the modified-but-official unemployment figures are less bad than expected and the credit markets appear to have stabilized.
Against the background of this apparent revival there is at least one thing very striking: the executives of banks and financial institutions have for some months masse their own shares of the hand is doing. Especially since this trend in August adopted a crazy pace. Why do financial insiders something similar, while the stock go up precisely and thus their shares are worth more? That does actually nothing at all ... unless they know something the general public (yet) know.
Although such a wave of insider selling is not necessarily a new crash predicts, in any case suggests that those who are most aware of the economic and financial situation, consider that the stock currently (much) too high. "It's not very complicated," said Charles Biderman, head of market research firm Trim Tabs. "Insiders are better informed than you and me. If prices are too high, then sell their shares. " Some two years ago, even the insiders sold their shares quickly, right before the outbreak of the subprime mortgage crisis.
According to Biderman, the financial insiders for every $ $ 1 purchased shares are sold for less than $ 31. Of course he is not the only one who noticed. Ben Silverman, head of research at InsiderScore.com, insiders said that since the summer of 2007 not so fast through their shares have done now. He calls it an "orgy sale. It is also noteworthy that he insiders at the nadir of the market when the S & P 500 fell in March to 666 points, just a lot of shares purchased. After the S & P rose again to over 1000 points.
"That was fantastic of them done," said Silverman. "They bought when prices were low, so it makes sense right now to see what they do now the prices are higher." Executives of several companies in recent months did so many (tens of) millions of dollars richer. "The difference between buyers and sellers is currently huge," said Silverman. "That's the beauty of following the insider-trading these guys talk to their bank accounts."
Gold at the top level; U.S. dollars sinking further and further away
Meanwhile gold specialist Jim Sinclair seems slowly but surely like to get. Gold today is experiencing the highest ever closing week (now $ 1006.20) and the dollar begins to sink faster and faster (dollar index is now 76.68). According to Sinclair the dollar in early November will finally collapse and gold will be a huge outbreak up experience.
"The battle for $ 1000 gold continues with Saruman and Sauron (JPMorgan & Goldman Sachts)," he writes on his website. "They seek the rebellion of the forces of honest money against their heerschappijde to crush. Unfortunately for them, the rebels managed to strike back and thwart their plans. "
"The profits of gold is even more impressive in light of the weakness of crude oil and the increase in the bond market. It seems to me that gold as a safe harbor to begin as the bond market. This is a break in the pattern in which gold generally decreases as bonds rise, and vice versa. If this continues it means a huge shift from investors, who until now had the rather silly view that gold is a 'risky' investments would be safe and paper bonds refuge for their capital goods. "
"The limited, finite gold has stood test of time. Strangely enough the yellow metal has long been regarded as a "gamble", and the indefinitely growing mountain debt obligations ( "Debt Obligations") of what actually is a bankrupt country, long regarded as a "healthy" investment opportunity! Future historians will, when they look back on this period, are very surprised about. "
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