A strong earth quake with a magnitude of 6.2 in the Richter scale hit the Japanese capital Tokyo, Monday, causing the buildings to sway for more than 30 seconds, national broadcaster NHK reported. The broadcaster said there was no alert issued for tsunami.
Why are some of the biggest names in the corporate world unloading stock like there is no tomorrow, and why are some of the most prominent investors on Wall Street loudly warning about the possibility of a market crash? Should we be alarmed that the big dogs on Wall Street are starting to get very nervous? In aprevious article, I got very excited about a report that indicated that corporate insiders were selling nine times more of their own shares than they were buying. Well, according to a brand new Bloomberg article, insider sales of stock have outnumbered insider purchases of stock by a ratio of twelve to one over the past three months. That is highly unusual. And right now some of the most respected investors in the financial world are ringing the alarm bells. Dennis Gartman says that it is time to "rush to the sidelines", Seth Klarman is warning about "the un-abating risks of collapse", and Doug Kass is proclaiming that "we're headed for a sharp fall". So does all of this mean that a market crash is definitely on the way? No, but when you combine all of this with the weak economic data constantly coming out of the U.S. and Europe, it certainly does not paint a pretty picture.
So why are all of these very prominent executives cashing out all of a sudden?
That is a very good question.
Meanwhile, some of the most respected names on Wall Street are warning that it is time to get out of the market.
For example, investor Dennis Gartman recently wrote that the game is "changing" and that it is time to "rush to the sidelines"...
EU officials have to be dismayed by the electoral muscle displayed by anti-austerity parties in Italy on the right and left, reflecting continuing public outrage over deficit-reducing measures imposed by the emergency caretaker government of economist and political neophyte Mario Monti. The moves, including higher taxes and public service cuts, appeased Italy’s euro zone partners and global bond investors, reducing government borrowing costs and helping to stabilize the common currency. But the economy fell into a deepening hole, incomes plunged, unemployment worsened and voters took out their anger at the polls. Mr. Monti’s centrist civic movement won only about 10 per cent of the vote.