Corporate insiders are more bearish today than they’ve been in more than a decade.
That’s bad news for the stock market, since it stands to reason — and this is backed up by the data — that insiders have greater insight into their companies’ prospects than the rest of us. Insiders include officers, directors and the largest shareholders. They are required to report more or less immediately to the SEC whenever they buy or sell shares of their companies’ stock, and many on Wall Street pay close attention to trends that emerge.
Research conducted by Nejat Seyhun, a finance professor at the University of Michigan and a leading expert on the behavior of…