When corporate insiders sell their own shares, it’s a good signal that the markets are overvalued. This month, the insider sale-to-buy ratio has jumped to its highest level since late 2024:
Insider sales have spiked to a level last seen in late 2024. (Source: The Washington Service)
Corporate insiders began ringing the cash register just as the S&P 500 touched 7,000. Given that the market is up over 40% from last April’s “Liberation Day” lows, a modicum of profit-taking is wise.
~ Addison
P.S. “If it ain’t broke,” is how Andrew Packer kicked off the review of the Grey Swan Model Portfolio on Friday. The high market valuation was only part of the conversation during our quarterly review. Catch the replay in the members section of the Grey Swan website.
Precious metals also figured prominently during the review with a 10-sigma move in silver, which tanked 32%. Peak-to-trough, gold also fell 9%, under $5,000.
Markets appear concerned about Kevin Warsh, President Trump’s pick for the next Fed Chair. Warsh is a sound money advocate who would like to see the central bank’s balance sheet reduced. A great goal, but it would also require a more austere fiscal policy.
Expect some market whiplash – but the reasons for holding gold and silver (especially in physical form) remain intact.
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