What Do They Know? Insiders Are Dumping Stocks at The Fastest Pace in History
The comments below are an edited and abridged synopsis of an article by Michael Snyder
Why are CEOs and corporate insiders selling stock? If stock prices continue to soar, insiders that are dumping stocks will miss out on enormous profits. On the other hand, if a colossal market crash is coming in 2022, then 2021 was the perfect time to get out.
CEOs and corporate insiders have sold $69 billion of stock so far this year. That is a new all-time record, and it is 30% higher than last year.
This fire sale comes just as the US economy has reached a critical turning point. The US is experiencing the worst supply chain crisis in history, inflation has reached levels not seen since the 1970s, and rising violence in the streets is discouraging economic activity in many of the largest urban areas.
Over the past two years, the US government has borrowed and spent trillions of dollars that it could not afford to spend. At the same time, the Fed pumped trillions of dollars into the financial system. It took these measures in a desperate attempt to resuscitate the economy, and for a while there was a sugar high.
But now there are signs that the economy is slowing down again.For example, sales on Black Friday were down 28.3% compared to 2019 levels.
Apologists in the media say that retail sales are down because online sales are booming, but that is not true. In fact, sales on Black Friday and Cyber Monday were both down, despite the fact that US leaders have been pouring trillions of dollars on to the fire.
Meanwhile, the latest manufacturing numbers were a disappointment, and analysts are blaming that on the ongoing supply chain crisis.
Of course the mainstream media tries to put a positive spin on economic woes. But inflation is destroying the American standard of living, and more Americans are falling out of the middle class every day.
A lot more pain is on the way. Meanwhile, corporate insiders are selling their stocks. Can they feel what is coming?