I have just returned from a week in Cuba. And, just like Cuba, where the auto fleet and infrastructure have not been changed (except to deteriorate) for decades, CNBC’s efforts to create fear and confusion in the minds of investors (keeping them cringing, glued to the tube), also have not changed…‘plus ca change, plus c’est la meme chose’.
“Insiders sending an ominous market signal,” is a perfect example, penned by CNBC Finance Editor, Jeff Cox (A.K.A, “The Bad News Bearer”– He never has anything positive to say). The article points out a 4 1/2 year peak in corporate insider selling, a very bad omen. You know. When insiders flock out of their company’s stock, well, they’re in the know. Something bad is about to happen.
My question, to gain perspective is, how did that indicator work 4 1/2 years ago? It Did Not. Although the market may have experienced downdrafts after that number was posted, they were not monumental. You would have been much better off taking a prolonged nap. On May 24, 2011 the S & P 500 closed at 1316.59. The close today, November 24, 2015 was 2089.14, up 773 points (58%). Of course, Cox neglects to point this out in his OMINOUS article. The moral of this story, regardless of the indicator: It is hard to time the market and easy to be left at the station after the train pulls away. If you must watch this noise, arm yourself with perspective.
One way to get perspective is with kortsessions.com.
What’s your take?
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