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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Tom Smith who wrote (288999)6/15/2004 8:06:45 AM
From: zonder  Read Replies (1) of 436258
 
US corporate insiders are selling off their shares as the equity market rebounds. Dr. Faber sees this as a sell indicator for all investors

Is it really a mystery why people would expect the equity market to decline in a period when interest rates will be rising... and sell before that happens?

By the way, such an assertion is impossible to justify or use to support any statement: "corporate insiders are selling off their shares". Which insiders? What percentage of insiders to the total are selling shares? How many shares are they selling anyway?

The real "sell indicator for all investors" should be that the Fed will be raising interest rates. A quick look at history shows that equity markets always do poorly at such periods - not only because of the economy cooling off (desired effect of the interest rate rise) but also because higher risk-free interes rate means lower cash flow valuations.
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