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Insider Buying Week 07-19-24 Trump Survives Assassination Attempt but Republican Convention Kills Trump Rally

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The assassination attempt on Trump failed, but the Republican Convention succeeded in killing the Trump stock market rally.  The week started on a positive note with almost a providential feel but began unraveling as market participants grappled with what a second-term Trump Presidency might really look like. Trump’s acceptance speech landed like a lead balloon on an increasingly nervous market. It didn’t help that Goldman Sachs said a 10% market correction might be underway.  Israel struck targets in Yemen in retaliation for a lethal Houthi drone attack in Tel Aviv. Tensions escalated as the threat of a broader war in … Read more

Bye Bye Jay Time for Another Chair Insider Buying Week 3-24-23

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We are deep in the darkness, the earnings blackout period in which corporate insiders are restricted from buying their own shares. It’s a perfect time for short sellers to prey on the frazzled nerves of investors that just experienced their first bank run since the Great Financial Recession of 2008. This time the run wasn’t caused by Wall Street and banks that sold liars loans to uncreditworthy customers but instead by the monetary policy of the Federal Reserve itself. Jay Powell left interest rates at zero far too long and raised them far too fast. He failed at running the … Read more

Federal Reserve Chairman Powell is a Dangerous man

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I wrote to clients in the February update that  Federal Reserve Chairman Powell is a dangerous fellow.  Last week he proved that causing a run on the banking system.  Ironically if the creation of a new Bank Term Funding Program (BTFP)had been in place the week before, Silicon Valley Bank might have avoided failure and bankruptcy. Powell’s rapid hike in interest rates as a cure for the supply-side inflation shock is likely to be as successful as the ancient but now discredited medical practice of bleeding the patient. If Powell was the CEO of a public company, activist shareholders would … Read more

Ugly Ugly and then some Ugly week 4-29-22

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  Curious how well insiders are doing with their buys? Scroll through the significant buys of the last year. If you thought last week was ugly, this Friday took the cake. We’re now testing the lows set this year and if you’re not nervous about the market, you’re in denial. The S&P 500 Index slumped on Friday, capping its biggest monthly decline since March 2020. According to Bloomberg, the benchmark gauge closed down 3.6%. All 11 major industry groups declined, with the consumer discretionary, real estate, and information technology sectors leading losses. The tech-heavy Nasdaq 100 Index fell 4.5%, closing … Read more