BREAKDOWN: Did Corporate Insiders Perfectly Predict the Market Top?
CoinDesk Podcast Network
CoinDesk
4.8 • 689 Ratings
🗓️ 24 September 2020
⏱️ 15 minutes
🧾️ Download transcript
Summary
In August, the volume of personally owned stock sold by corporate executives reached its highest level since 2015, followed by a 10% decline in the S&P500 in September.
This episode is sponsored by Crypto.com, Bitstamp and Nexo.io.
Today on the Brief:
- Initial U.S. jobless claims up to 870,000
- Partial lockdowns begin in earnest in Europe and Israel
- The global demand for American stocks
Our main discussion: Did corporate insiders perfectly time the market top?
August saw the largest volume of insider selling since 2015, with more than 1000 corporate officers offloading $6.7B in stock. Subsequently, the market has seen a 10% decline since the S&P500 all time high of Sept. 2. What’s more, according to new statistics, insider selling is happening at the fastest pace since 2012.
The question is: What do these executives know that the rest of the market doesn’t?
See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.
Transcript
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| 0:00.0 | I think we'd do well to pay attention to what people do, not what they say. |
| 0:05.7 | Last month, no matter what people were saying, no matter what the narrative around the |
| 0:09.9 | great American recovery was, the leaders of the companies at theoretically the top of that |
| 0:15.6 | recovery were selling hand over fist and getting out as fast as they could. |
| 0:21.6 | Make of that what you will. |
| 0:24.6 | Welcome back to The Breakdown with me, NLW. |
| 0:28.7 | It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world. |
| 0:34.9 | The breakdown is sponsored by crypto.com, Bitstamp, and nexo.io, and produced and distributed by |
| 0:41.0 | CoinDess. What's going on, guys? It is Thursday, September 24th, and today we are talking about |
| 0:48.6 | insider selling and whether corporate insiders perfectly timed the market top. |
| 0:55.4 | First up, however, let's do the brief. |
| 0:58.0 | First on the brief today, initial jobless claims rose this week. |
| 1:03.1 | Every Thursday, we get the jobless claims reports, |
| 1:06.2 | which give us a picture of the economy as it's being experienced by the average sort of worker. Economists |
| 1:13.4 | expected there to be 840,000 claims this week, and instead we got 870,000 claims, which was |
| 1:20.9 | 4,000 more than last week. Now, the total number, aka continuing claims, fell, but it fell by less than forecast, and that number |
| 1:30.2 | is still twice the high from last recession. These jobless claims are, of course, the inverse flip |
| 1:37.2 | side of good news from the stock market, although, as we'll see, the stock market isn't doing |
| 1:42.5 | great either. And more than anything, |
| 1:44.8 | it suggests that perhaps we're in a different phase of the quote-unquote recovery. |
| 1:49.7 | Ryan Sweet from Moody's put it like this. He said, we're getting to that point where the easy |
| 1:54.7 | hiring is behind us. This next leg of the recovery is going to be much more driven by the underlying |
... |
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