Retail Investors Keep Buying as Insiders Keep Selling

Thanks to inflation, a penny stock today is considered any stock trading under $5 per share. That’s also the price where institutional investors are cut off from owning a stock – it’s just too low a price and it’s too easy for big money to buy shares.

But that isn’t stopping retail investors from buying sub-$5 stocks – and now, true penny stocks trading under $1.00.

Today, a whopping 47% of all market volume is in sub-$1 stocks:

Turn Your Images On

As mentioned in this morning’s Swan Dive, Regencell Bioscience started the year as a penny stock, trading as low as $0.09, split-adjusted.

It’s now been the best market performer year-to-date – even without any positive corporate developments to point out – just pure retail buying. (We also strongly urged you not to buy the stock.)

In the meantime, company insiders are now picking up the pace of their sales:

Turn Your Images On

Of course, insiders have many reasons to sell, from putting a kid through college, paying for a messy divorce – or just the good old-fashioned opinion that their shares are overvalued.

These two trends suggest that retail investors are getting ebullient, while the insiders who know their company’s value inside and out are hitting the cash register.

~ Addison

Good News for Stocks

50-year Wall Street veteran, Marc Chaikin is stepping forward to share why history gives him 90% historical confidence that stocks will end 2025 up. However, he also has bad news: the same data also tells him the REAL market crash will likely arrive in 2026. Click here to see the month and day he estimates it will begin.

P.S.: Looking for small-cap companies that are driven by fundamentals and not just retail sentiment?

Consider joining our Portfolio Director Andrew Packer at the Rule Investment Symposium in Boca Raton on July 7-11, 2025. Click here to attend and meet your future cutting-edge resource investments face-to-face.

And for paid-up members: Be sure to join us for Grey Swan Live! tomorrow, June 19, 2025. It’ll be Juneteenth, and we’ll be discussing international investing, value investing, and how to find massive stock winners over time with Chris Mayer. Chris is always a good conversation.

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)

But that isn’t stopping retail investors from buying sub-$5 stocks – and now, true penny stocks trading under $1.00.

Today, a whopping 47% of all market volume is in sub-$1 stocks:

Turn Your Images On

As mentioned in this morning’s Swan Dive, Regencell Bioscience started the year as a penny stock, trading as low as $0.09, split-adjusted.

In the meantime, company insiders are now picking up the pace of their sales:

Turn Your Images On

Of course, insiders have many reasons to sell, from putting a kid through college, paying for a messy divorce – or just the good old-fashioned opinion that their shares are overvalued.

These two trends suggest that retail investors are getting ebullient, while the insiders who know their company’s value inside and out are hitting the cash register.

~ Addison

Good News for Stocks

P.S.: Looking for small-cap companies that are driven by fundamentals and not just retail sentiment?

As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)

The stock market is getting an unexpected boost to kick off August, bucking the historically weak summer session for the U.S. stock market.

What’s happening? The Bank of Japan and the U.S. Treasury are making a coordinated effort to support Japanese yen; a move last attempted nearly 30 years in the height of the Asian Financial contagion (1998).

Global opportunities aside, the US stock market’s stealthy reset of sectors outside the complex AI trade means solid U.S. companies are offering attractive entry prices, particularly in energy, rare earths and critical minerals.

The next phase of the AI boom won’t be decided by who builds the fastest chips, but by who can keep them powered.

Even retail investors are now increasingly skeptical of the AI space, particularly its cash flow. And rightly so…

The stock market is getting an unexpected boost to kick off August, bucking the historically weak summer session for the U.S. stock market.

The next phase of the AI boom won’t be decided by who builds the fastest chips, but by who can keep them powered.

Even retail investors are now increasingly skeptical of the AI space, particularly its cash flow. And rightly so…