Since corporate insiders typically receive stock as part of their compensation, it is normal for insiders to sell about 2 shares on the open market for every share they purchase outright. Recently, however, insider sales have been running at a pace of more than 8-to-1.
miserably low long-term returns.
On the surface, the U.S. economy is gradually recovering
Economic pressures are still negative, and sentiment is once again bullish enough to define an "overvalued, overbought, overbullish" condition.
I continue to be concerned about credit conditions and the underlying fundamentals of the U.S. economy.
As of last week, the Market Climate for stocks was characterized by unfavorable valuations, generally favorable trend action, weak price-volume sponsorship, strongly overbought conditions, moderate but not yet over-bullish sentiment, and hostile economic pressures.
It is impossible to properly estimate long-term cash flows based on a single year of earnings, regardless of whether one uses actual net earnings or projected operating earnings.
Important metrics of economic activity are slowing rapidly.
With stock market conditions characterized by strenuous overbought conditions, strenuous overvaluation, overbullish sentiment and hostile yield trends, a few features of the present market environment are worth noting.
