The Watchman Letter: Corporate Insiders VS Retail Investors, Who will be left holding the Financial Bag?

in #money2 years ago (edited)

This is one of my favorite quotes:
Sept. 1929
"There is no cause to worry. The high tide of prosperity will continue." Andrew W. Mellon, Secretary of the Treasury

Today there is nothing to worry about, because the Dow, S&P 500, and Nasdaq are at all record highs and this is the longest Bull Market in History.
Sometimes it is wise to look at the what the Corporate Insiders Sentiment is by their buying & selling of their Shares and their Corporate Stock Buy Back Programs. The most popular stocks are the FAANG Stocks.
2018 Insider shares activity and Stock Buy Backs:

  1. Facebook:
    Insiders have sold 37,545,053 Shares or $5.8 Billion worth of stocks.
    Corporate Stock Buy Backs is $6 Billion.

  2. Apple:
    Insiders have sold 949,319 shares or $73 million worth of stocks.
    Corporate Stock Buy Backs is $43 Billion

  3. Amazon:
    Insiders have sold 1,082,399 shares or $2 Billion worth of stocks
    Corporate Stock Buy Backs is zero Note: Amazon does have a Buy Back Program of $5 Billion

  4. Netflix:
    Insiders have sold 1,519,032 shares or $546 Million worth of stocks.
    Corporate Stock Buy Backs is zero Note: No Buy Back Program

  5. Google:
    Insiders have sold 29,813 shares or $37 million worth of stocks.
    Corporate Stock Buy Backs is $8 Billion.

The FAANG stocks are at all time highs and the Corporate Insiders are selling their shares.
Maybe they know something the Retail Investors Do not.
but remember "There is no cause to worry. The high tide of prosperity will continue."