Are People Gaining from Insider Trading?

We notice the market deliver some outstanding numbers this year with minimal resistance. And the growth of major indexes and hopefully peoples portfolios has been groundbreaking. But there still is a nagging question in so many peoples mind: could there be insider trading and are people making the most of it. Now I’m not saying people are acting on insider information but people who are up to their ears in the know and in the market are doing something the financial media for the most part is not telling the rest of consumers. Insiders are selling and are selling at an alarming rate in the tech area.

In a recent CNBC article, tech shares are selling like crazy but that’s not necessarily the fascinating part. No one is buying them, that’s the fascinating part.

The numbers will surprise you!

In just a few months, 55 million shares were dropped. Appears like a lot right? It’s even a bigger number once you look at the number purchased; 1,780. That’s not a joke it isn’t wrong it’s just plain crazy and somewhat scary.
Why are those in the know (not insider information or trading) dropping tech shares and why don’t consumers hear about it?

In this cnbc.com article, Alan Newman, editor of the Crosscurrents newsletter with nearly half a century of expertise goes even deeper:
“Insider activity confirms the rosy scenario shown by prices is only an illusion,” Newman writes. “Insiders have no confidence in their own companies. While prices appear to be indicating an all clear, we remain in one of the most egregiously speculative phases ever seen.”

Tech insiders are running for the exits and unfortunately the few shares that are being picked up are the day to day consumers. Those in the know may be unwittingly predicting the future trend for these tech shares.

The behavior from the top ranks at a few of these big tech companies are possibly showing they believe a tock price fall in the future. Clocking in every day they probably have a good idea of what’s going on and hopefully consumers and the average investor is watching.

It’s always helpful to have eyes on your portfolio and the market to ensure your assets are watched and informed.

Matt Golab Click here to find out a lot more about Matt Golab and his company Aaron Matthews Financial Resources


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