Insiders flee stock markets

It’s widely accepted that company directors are best placed to gauge the prospects for their business. So if many insiders across the stock market are bailing out of stocks, it may be a sign that executives fear a downturn.

It’s worth bearing in mind that insiders sometimes sell stocks for reasons unrelated to their firms’ outlook, typically to raise some capital. Many are paid in share options, for instance, and will cash these in by selling stocks before the options expire. But even taking this into account, insider sales look worryingly high at present.

Wirtschaftswoche points out that in April the ratio [...]

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