Insider Stock Selling Increasing as Buybacks Reach Record HighsAdam Gardiner
According to the latest estimates, stock buybacks will have reached an all-time high of $1 trillion this year. That’s a 46% increase from last year, and far higher than the previous high reached in, you guessed it, 2007. And that estimate could even be conservative, given that we’re still only three quarters into the year and stock prices have in recent weeks climbed back to record highs.
Those high stock prices have spurred corporate insiders to dramatically increase their rates of stock sales, as they hope now to cash in on those high prices as they exercise their stock options. Despite all the rhetoric you might hear from corporate America about the strength of the economy, the strong job market, etc., corporate executives know that the downturn is just around the corner. That’s why they’re cashing out in record numbers, hoping to get as much money as they can before things turn south. They’ll be sitting pretty with their huge piles of cash while ordinary investors are left holding the bag.
It’s important for investors to recognize this trend, and even more important for them to take the necessary steps now to protect themselves against a coming stock market crash. That’s especially the case for those nearing retirement, as losses rivaling those of the dotcom bubble bursting and the financial crisis era cannot be ruled out. It’s a rare investor indeed who can weather a 50-70% hit to his portfolio and still be on solid financial footing.
And that’s why more and more investors today are looking to gold to safeguard their portfolios and the wealth they’ve accumulated. Just as corporate insiders are locking in their gains by selling stocks, savvy investors are locking in their gains by cashing out of stocks at record high levels and putting their money into gold.
Gold has served as a safe haven asset and store of wealth for centuries and has consistently protected investors’ assets during times of financial turmoil. When stock markets begin to decline, gold will only gain in value. And with the convenience of a gold IRA investors can even roll over existing retirement assets from a 401(k), IRA, or TSP account into a gold IRA investment, easy and tax-free.
Many investors will try to hang on to their stock investments even when it becomes clear that the market is in a rout. And many will lose faith once markets bottom out, cashing in their investments right at the bottom. Don’t be one of those investors. Take the necessary steps now to protect your hard-earned retirement savings from the coming bear market.