Sea Of Red Around The World As US Traders Fret Over Tech Margin Calls; Insider Selling Jumps To The Highest Level Of The Year

Insider selling jumps to the highest level of the year as execs fear a volatile September.

  • Insider selling reached $450 million daily in August, the highest level this year, data from TrimTabs show.
  • The selling takes place as the S&P 500 and Nasdaq Composite reach all-time highs in August.
  • But history shows September is typically the worst month for stocks, possibly explaining why corporate executives sold so much stock.

September has historically been a very volatile month for the stock market, and corporate executives booked some profits in anticipation of it.

According to data compiled by TrimTabs, insider selling reached $450 million daily in August through last Thursday, the highest level this year.

“As corporate buying is at least taking a breather, corporate insiders are ramping up share selling as the major U.S. stock market averages are at or near record highs,” TrimTabs wrote in a note.

The S&P 500 and Nasdaq Composite both reached all-time highs to end August, boosted by robust economic data and sharp gains in tech.

 

Major central banks are in a weaker position today than pre-2008 to fight future crises, say former central bankers.

 

 

The wide-ranging reforms put in place after the global financial crisis a decade ago have left central banks in worse shape to combat another international conflagration or an all-out cyber attack on banks.

That’s a surprising conclusion from a report by the Group of 30, an influential forum of current and former policy makers and academics that includes European Central Bank President Mario Draghi and Bank of England Governor Mark Carney.

“Some of the tools to fight the hopefully rare but extreme crises in the future have been weakened,” Timothy Geithner, co-chair of the G-30 working group that put together the report and a former U.S. Treasury secretary, told reporters.

“This is especially true in the U.S.,” where Congress limited the ability of the Federal Reserve and the Federal Deposit Insurance Corp. to provide emergency support to the financial system, added Geithner, now the president of Warburg Pincus LLC.

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