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Inside the Market U.S. insiders selling stock at fastest pace since financial crisis

A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web

CBC News reports that U.S. insiders are selling a ton of stock, particularly in the technology sector,

“According to research firm TrimTabs, in the month of August insiders at American companies were selling, on average, about $600 million worth of shares in their own companies a day (all figures US)… Five times this year already they’ve sold more than $10 billion worth of stock in a single month. The last time the markets saw that much selling that many times in a year was in 2006 and then again in 2007… Insiders at technology companies, including the so-called FAANG stocks — an acronym for Facebook, Amazon, Apple, Netflix and Google — have been some of the biggest sellers. That could be a sign they think the impressive years-long run-up in the share prices of those companies is over.”

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“U.S. corporate insiders selling shares at fastest pace since financial crisis a decade ago” – CBC

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CIBC economist Avery Shenfeld believes the U.S. and Canada will avoid recession, but are still looking at a prolonged period of slow economic growth,

“Economies that escape the wrath of recession won’t have the working age population gains needed to return to anything close to growth rates of decades past. We see global growth at less than 3% in 2020, and the US and Canada not rebounding to anything better than a 2% pace. Even former powerhouses like China are going to find that a good year just ain’t what it used to be.”

“@SBarlow_ROB CM's Shenfeld: "Get used to brushes with negative growth that don’t foretell a recession" – (research excerpt) Twitter

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Morgan Stanley strategist Andrew Sheets thinks investors should remain cautious,

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“Over the last year, global equities are up just 1% … a reasonable question to ask is whether conditions are better, worse or similar to a year ago, when we sat at similar levels. Broadly speaking, we think they’re worse. Relative to September 2018: Global growth has deteriorated, with US, eurozone and China PMIs falling below 50 and showing acute weakness in new orders… The global trade backdrop is worse … Earnings growth globally has decelerated sharply. Global equity earnings were growing at 17%Y in 3Q18. For 3Q19, they’re growing at just 1%Y.”

As a reminder, the fourth quarter of 2018 was not a lot of fun for investors.

“@SBarlow_ROB MS' Sheets: Market backdrop worse now that a year ago” – (research excerpt) Twitter

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Tweet of the Day:

Diversion: “Apocalypse Now - Conversation Martin Sheen and Francis Ford Coppola” – Youtube

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