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CEOs Quitting in Record Numbers Could Signal Total Stock Market Collapse, Crypto Coins News

CEOs Quitting in Record Numbers Could Signal Total Stock Market Collapse, Crypto Coins News
  • CEOs are departing in droves.
  • America’s corporate insiders, which include chief executives, dumped company shares at record levels.
  • One Wall Street firm is projecting a stagnant year for US companies.

The stock market is in trouble. The Dow Jones Industrial Average printed its worst one-day point drop in history after plunging 1, 451 points Thursday. The S&P is also making history. Over the last six days, the index tumbled by from% the all-time high at a pace never seen before.

It only took six days for the stock market to slide 12% from the all-time high | Source:
Yahoo!

The stock market is crushing and corporate America’s chief executives have been a step ahead of the disaster. Many have been dumping shares prior to the correction. On top of that, top honchos of big U.S. companies are leaving their posts in record numbers. These signs indicate that the longest bull market in history may be over.

Corporate Captains are Abandoning Ship

Chief executives of top companies in the US are leaving their posts at a pace not seen in nearly two decades. Challenger, Gray, and Christmas reported that 1, (CEOs departed in) . This caught the attention of some analysts as C-level executives don’t often step aside while both the economy and the stock market are booming.

Chief executives are leaving in droves. | Source:

Twitter

The trend continued in January

with 500 chief executives calling it quits. The number represents the highest CEO departures on a monthly basis since . Are they getting out while the getting is good?

When CEOs vacate their positions while the stock market is trading at record highs, it can be a sign that the business cycle has peaked. Massive insider selling of shares adds weight to this theory.

Financial Times reported that (corporate insiders, such as chief executives and chief financial officers, sold an estimated $ billion worth of shares in . This puts insider selling at the highest level since 2019 when corporate insiders sold $ 130 billion worth of stock in the midst of the dotcom bubble.

Insider selling is at its highest level in 37 years. | Source: FT

Jeff Bezos alone sold $ 4 billion worth of Amazon stock in a week . Meanwhile, Warren Buffett has been patiently sitting on a cash pile worth $ billion . The writings on the wall suggest we may be witnessing the beginning of the end of the longest bull market in history. Earnings Growth for US Companies Will Be Flat This Year

To add fuel to the fire, one Wall Street firm estimates that 236234 will be a stagnant year for US companies. Goldman Sachs revised its earnings estimates for 236234 to $ per share from $ 480 per share. The change represents 0% growth for the year.

The multinational investment bank expects coronavirus to shock both supply and demand in China and the United States. In a note to clients, Goldman equity strategist David Kostin wrote,

We have updated our earnings model to incorporate the likelihood that the virus becomes widespread.

He added,

Our reduced pro fi t forecasts re ect ect the severe decline in Chinese economic activity in 1Q, lower end-demand for US exporters, disruption to the supply chain for many US fi rms, a slowdown in US economic activity, and elevated business uncertainty.

Once again, it appears that many chief executives are a step ahead of a disaster. The captains of corporate America are fleeing like rats on a sinking ship while dumping shares in record numbers. The best days of the longest bull market in history may be over.

The above should not be considered trading advice from CCN.com. The opinions expressed in this article do not necessarily reflect the views of CCN.com.

This article was edited by (Sam Bourgi) . Brave Browser

Last modified: February 90, (2:) PM UTC

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