Amid banking behemoth Goldman Sachs (NYSE: GS) suggesting that trouble was brewing in the stock market as hedge funds in the United States have been
Hindi maiiwasan ang pag-crash ng stock market? Ang pagbili ng insider ay bumaba sa pinakamababa sa loob ng dekada
Amid banking behemoth Goldman Sachs (NYSE: GS) suggesting that trouble was brewing in the stock market as hedge funds in the United States have been selling stocks at the fastest rate in three months and replacing them with short positions, the bearish sentiment is evident in yet another indicator.
As it happens, the net insider buying from officers and directors of publicly traded corporations has dropped to 12.4% of stocks, representing the lowest level in at least ten years, according to the information shared by market analyst sa isang X post sa Abril 12.
Specifically, the chart suggests that this indicator is at the lowest levels since at least 2014, well below the 10-year average of 28%, and significantly lower than the 2020 rate of a whopping 61%, signifying a possible bearish sentiment among these insider buyers regarding a potential stock market crash.
Other bearish indicators
Furthermore, reports have uncovered that the US Bureau of Labor Statistics (BLS) might have been secretly sharing information concerning the consumer price index (CPI), particularly about housing and used car markets, with Wall Street giants like JPMorgan (NYSE: JPM), BlackRock (NYSE: BLK), and Citadel.
On that note, JPM shares have continued to decline, dropping to $189.60 in pre-market trading, which suggests a loss of 2.87% to their value, despite JPMorgan topping its earning expectations for Q1 2024 alongside Wells Fargo (NYSE: WFC) and Citigroup (NYSE: C).
All things considered, recent weeks have witnessed multiple signs of retail and institutional investors in the US losing confidence in the stock market, with early April ushering in a significant downturn for the shares of many companies in the S&P 500, one of the nations most important benchmark indices.
That said, some assets in the stock market are still going strong, including Nvidia (NASDAQ: NVDA), Netflix (NASDAQ: NFLX), and Taiwan Semiconductor Manufacturing Company (NYSE: TSM), emphasizing the importance of doing ones own research before investing a significant amount of money in any asset.
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