Insiders Buying Like It's 2009
Already, the financials headlines are comparing the August stock market declines to the selloff that took place in 2008. While the volatility may be similar, this selloff is clearly not based on the same fundamentals. In 2008, credit was nonexistent, major banks were grossly over leveraged and housing prices were about 25% higher than they are today. Today, the U.S. is not in a credit crisis, bank leverage ratios have come down meaningfully, consumers have a little less debt and credit is available, although some would say at very restricted levels. Europe's credit issues are not insignificant, but European debt is not as widely held as U.S. debt.
The economy may be slowing, and a healthy correction may be just what the market needed. In the meantime, while the world seems to be selling in panic, insiders are stepping up and buying at levels not seen since 2009. Insiders seem to be buying behind the major, fundamental difference between now and 2008: corporate profitability. In 2008, profits were nonexistent; today they continue to appear resilient....475 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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