The evidence of warning signs for a selloff in stock prices continues to build. A spike in selling by corporate insiders and greater optimism by individual investors are the latest signs.
Selling by corporate insiders of their own company shares has spiked in recent weeks. Individual investors, who have been net sellers of equity mutual funds and exchange-traded funds for many months, have become net buyers of stocks. They may be right, but after a doubling in major stock indexes over the past four years, it seems to me that a more prudent course would be to reduce stock holdings now, rather than increase them.
S & P 500: 1470