According to a just released report by CNN, corporate insiders are selling stock at a remarkably high rate. This almost certainly signals a lack of confidence in what CNN calls “the longest bull market in American history.”
According to CNN, after August hits its final stock floor bell, insider selling will be around $10 million for the month, making this the fifth month of 2019 where that mark has been met. This phenomenon hasn’t occurred since 2006-7, a two year stretch that notably preceded the 2008 economic crisis.
CNN quotes TrimTab analyst Winston Chua as saying that “when insiders sell, its a sign they believe valuations are high and it’s a good time to get out of the market. It’s very probable that this insecurity has been caused by the tumultuous market of the past year or so and the ever-growing fear of recession. CNN reports that last December’s market was the worst that month has seen since the Great Depression.
Whether all of this flux signals a recession is yet to be seen, but the onslaught of insider selling and general market unpredictability certainly suggest that those in the know don’t expect this record breaking bear market to last much longer.