Nasdaq Insiders Are Cashing in Their Chips …”The Game Is Up”

Wednesday, March 11, 2015
By Paul Martin

Bill Bonner
Acting-Man.com
March 10, 2015

Today … a warning concerning the new highs in the Nasdaq. Stocks fell hard on Friday. The Dow saw a massive sell-off of 278 points – or 1.5%. Gold was flat. You’ve heard by now why stocks fell – because of Friday’s Employment Situation report. Nonfarm payrolls rose 295,000 in February versus expectations of the consensus forecast of 230,000 new jobs added.

Investors took this “good news” to mean that maybe the Fed would allow interest rates to return to normal sooner rather than later. After all, the crisis that led to its zero-interest-rate policy (ZIRP) is plainly over.

The stock market is where businesses are bought and sold. Prices should go up when those businesses are worth more – that is, when their prospects for earning more money improve. They should go down when the outlook darkens. So why would the value of American businesses go down just when things are looking up?

Oh, you silly reader … where have you been? Everybody knows the stock market now has little to do with the real value of the businesses it trades. Buybacks, carry trades, gambling, speculation – hey, this is 2015!

In the Nasdaq, for example, some valuations are now as frothy as they were in the last bubble – in 2000. Website Zero Hedge recently reported that tech company founders were selling a record amount of shares in the companies they controlled.

Why would you sell shares in a company that was on the verge of a cancer cure … an aging remedy … or the next Apple? Of course, you wouldn’t. The insiders know the game and when to leave the casino. And they’re getting out now.

The Rest…HERE

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