The Stock Market is in trouble. The Dow Jones Industrial Average tumbled 1,191 points on Thursday, the worst day in its history, while the S&P 500 plunged 10% in six days – one of the fastest corrections ever noted in its history.
It only took six days for the stock market to slide 10% from the all-time high | Source: Yahoo!
The stock market is falling downwards and the captains and titans of major corporations have, as always, been one step ahead of us. Many have been dumping their holdings long before the correction. Most recently, Bob Iger just left The Disney Corporation. This could be a sign that the longest bull market in history could be over.
Chief executives across the United Stares are leaving their posts at a pace not seen in nearly two decades. 1,480 CEO’s left their companies in 2019. It’s important to note that C-level executives do not step aside while the economy and the markets are booming. In 2020, 219 Chief Executives have left – this is the highest number of CEO departures on a monthly basis since 2008.
Financial Times reported that corporate insiders, such as chief executives and chief financial officers, sold an estimated $26 billion worth of shares in 2019. This puts insider selling at the highest level since 2000 when corporate insiders sold $37 billion worth of stock in the midst of the dotcom bubble.
Jeff Bezos sold $4 billion dollars worth of Amazon stock in a week. The Oracle of Omaha has patiently been sitting on $130 billion in cash. The writing on the wall is clear.
Goldman Sachs just recently revised its earning estimates for 2020 to $165 per share from its previous estimate of $174 per share. This represents 0% growth for the year. The firm anticipates the Coronavirus to shock both supply and demand in China and the United States. It’s anticipated that 2020 will be a stagnant year.
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