In the first four months of this year, US insiders have sold US$ 14 billion worth of stocks compared to just US$ 4 billion in the comparable period in 2003. According to a study this is the highest insider selling on record since 1971 when these insider sales statistics began to be compiled. One must, therefore, wonder who will be right - the largely uninformed American public who has piled in into equity mutual funds at the highest rate since January and February of 2000, shortly before the stock market in the US peaked out (but failed in 2004 to move the market much higher), or the relatively well informed insiders who have been dumping shares! I for one, I am betting on the insiders and would, therefore, use the current rebound in share prices around the world as a selling opportunity.
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