As the S&P 500 hit record highs over the last month, insider selling by corporate executives has significantly increased, contradicting the general market optimism around potential Trump policies and economic growth that may drive up stock prices further.
The ratio of insider buys- to- sells plummeted to 0.22, the lowest level since at least 1988. This means that for every one purchase of shares, there were over four sales.
There are a lot of potential reasons for this insider selling, but whatever the case it indicates that corporate insiders are signaling that current stock valuations may be becoming a worry. As a result, there could be more volatility coming to the market that many expect.
#EyeonVolatility
