More Evidence that the Housing Bubble is Deflating
Richard Bernstein, a strategist at Merrill Lynch, pointed out in a note to clients that construction company executives had been vigorously selling their shares in their businesses. Heavy insider selling is a red flag.If insiders are selling, it is not a good sign for the near-term outlook of the industry.
"We think there is a strong contrary message," Mr. Bernstein said, because share sales at home builders are occurring "at a record pace across nearly the entire industry."
"We think this insider selling somewhat mimics that of the technology sector during the year surrounding the peak of the bubble," he said.
[from this link, courtesy of Sean]