I'm Baaaack!

[Bullypulpit]

 

[CSM]

<center><h1><font color=red>This can't be good...</font></h1></center>

<blockquote>December 10, 2002: 4:49 PM EST
By Paul R. La Monica, CNN/Money Staff Writer

NEW YORK (CNN/Money) - The stock market's two month long upswing is starting to fizzle, leading investors to wonder if maybe this was just a trader's rally and not the start of a new bull market.

Skeptics have argued that stocks have moved higher simply because short sellers are closing out bearish bets and fund managers are chasing performance in order to boost their moribund year-to-date returns. Optimists point to an improving earnings and economic outlook.

But now there's another reason to think that this rally might be on its last legs. Corporate insiders, presumably the people who know the most about their companies, dumped shares aggressively last month. So much for a display of confidence by Corporate America. (On Monday, CNN/Money wrote about another growing fear among market bears: that earnings estimates are way too high -- <a href=http://money.cnn.com/2002/12/09/pf/investing/q_earnings/index.htm>click here for more</a>.)

According to Thomson Financial, insider selling skyrocketed 125 percent in November to $2,6 billion from $1.2 billion in October. Tech insiders were especially busy as the level of selling increased to $861 million from $244 million, a whopping 250 percent rise. And insider buying? That was up just 5 percent, to $193 million from $184 million.</blockquote>

Corporate insiders, gosh they might actually know something, are selling their corporate stock holdings at a breakneck pace, a 125% increase in November. Despite the fragility of the 'recovery', nothing but "Happy, happy, joy, joy!" was heard from Dubbyuh's economic circle-jerk...er...conference earlier this week.

Now, it's commonly recognized that when insiders start selling more stock, alot more, than they're buying, $13 sold for every $1 bought at this point, it's usually a good sign to get out of the market. And with the soaring US Budget and balance of payment deficits soaring and the dollar continuing its freefall, this despite Dubbyuh's repeated babbling about a "strong dollar", the economy is in a far more precarious state that Dubbyuh and his merry band would have us believe.

So, as the economic picture looks grimmer with each passing month, our American Nero continues to fiddle. As demonstrated during the little economic circle-jerk this week, he really doesn't understand that the long discredited, supply-side economics of the Reagan-era still don't work. And reality continues to hover on the far distant horizon of his consciousness.

Ummm...two year old opinion??? I thought you were better than that?

 

[CSM]

Well, so much for predictions of the collapse of the US economy!