In late March, allegations of potential insider trading from various politicians in the U.S. almost immediately prior to the massive selloff we’ve experienced (and as President Donald Trump was asserting the virus was nothing to worry about and potentially a hoax) has raised questions about whether lawmakers knew more than they were leading on and were not fully transparent.
As we let the courts sort out those issues, it’s important for all investors to stay abreast of the news and watch for situations like this, as insider selling can sometimes be a canary in the coal mine when things aren’t right, particularly insider selling to this degree.
It’s now clear to most that we’re in the midst of serious economic turmoil, so I’d suggest investors place an increasing amount of scrutiny on any large or significant stock sales by insiders at this juncture, as such transactions hold more predictive weight in a market crash.
As always, please ensure you contact a certified financial advisor before making any investing decisions; whether insiders in a particular company buy or sell their stock is not in any way indicative of the future stock price movement of any company.
Insiders sell stock for a wide range of reasons, many of which have nothing to do with future expectations of performance.
The purpose of this article is to provide readers with information from which investing decisions can be made in conjunction with the assessment of company fundamentals and future cash flow projections.
Invest wisely, my friends.
