If CEOs are selling like never before, there will be a reason.
Why are CEOs and executives selling their shares at a much faster rate than we've ever seen before? Do they know something the rest of us don't know? The mainstream media, and central banks, are always trying to allay fears, yet so-called insiders, those in the know, are selling like there's no tomorrow.
These data would be perfect if we thought that in 2022 there will be a fall in the market. If you were the chief executive officer or financial manager of a large company, such as Microsoft, would you not sell the stock to save your wealth? And in fact he is one of those who did it.
As you can read above, in November 2021 we reached 50 billion own shares sold. A huge figure, never seen before. This enormity comes from the combination of two factors: the very high price and the sales volumes
According to CNBC, CEOs and insiders sold shares worth $ 69 billion this year. This is a new all-time record, and that's a whopping 30% up from last year…
From Satya Nadella at Microsoft to Jeff Bezos and Elon Musk, CEO, founders and insiders have cashed in their shares at the fastest pace ever.
As of Monday, insider sales were up 30% from 2020 to $ 69 billion and 79% from a 10-year average, according to InsiderScore / Verity, which excludes sales from large institutional holders.
Interestingly, this sell-off has come to a crescendo just as the US economy has reached a critical tipping point. We are in the midst of the worst supply chain crisis in our history, inflation has reached levels we haven't seen since the 1970s, and increasing violence on our streets is depressing economic activity in many of our larger urban areas.
Over the past two years, the federal government has borrowed and spent trillions of dollars that we couldn't afford to spend. Over the same period, the Federal Reserve pumped trillions upon trillions of new dollars into the financial system. They have taken these measures in a desperate attempt to revive the economy, and for some time we have certainly experienced a "high sugar level".
But now there are all kinds of signs that the economy is starting to slow down once again. For example, Black Friday sales fell by 28.3% from 2019 levels. An impressive figure that can only signal a bad storm coming. Now everyone is focused, even in the US, on inflation. Some media even talk about inflation as a good thing, which would be true if incomes went up like inflation. The problem is that this does not seem to be happening, so the purchasing power of consumers is reduced and the foundations are being laid for a deep economic crisis.
Anyone who can read the numbers knows this situation and sells. If he has more information then he sells first.
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The article If the CEOs sell, like never before, there will be a reason .. comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/se-gli-amministratori-delegati-vendono-come-mai-prima-ci-sara-un-motivo/ on Fri, 03 Dec 2021 18:15:45 +0000.