I think that I will sell the small amount of banking stock that I’ve held for years
I take it as a given Dimon, and people of his ilk, talk their book constantly. How many times has JPM been sued for market manipulation on his watch?
The difference between our opinions is all hell will break loose versus a mild meaningless recession that no one really notices.
I am looking at your track record @Divitias You have a wooden clock from the 1500s. The hands have rotted off 120 years ago.
I am not saying he is not saying that…in fact, he has previously mentioned words like hurricane is coming (2022?) and very dangerous times ( just in the last few weeks)
But honestlly, if that was his intention to sell…why would he even bother telegraphing that so far in advance…He may be a fine gentleman, but even then, I doubt he is that altruistic to allow everyone else to sell before he does!
Now, if he actually sold all his shares or a significant portion just straight away, and that comes out through the SEC…that would be something.
Reading through it, doesnt sound too ominous…only 10% of his holdings, and that too next year.
JPMorgan Chase CEO Jamie Dimon is selling some of his stock in the bank for the first time in his 18 years at the helm.
That’s according to the company on Friday which said the share sale would take place next year.
The billionaire banker and his family intend to sell 1 million of the 8.6 million shares they own, according to a regulatory filing.
The sale would fetch $141 million dollars and leave them with more than a billion dollars in stock based on Thursday’s closing price.
It will account for less than 10-percent of Dimon’s holdings which also include stock options and other shares that haven’t vested.
Investors sometimes view top executives selling shares as a bad sign.
JPMorgan said Dimon is selling the stock for financial diversification and tax-planning purposes and that he continues to believe the company’s prospects are very strong.
A management consultant focused on capital markets told Reuters the sale makes perfect sense but pointed out Dimon has become more negative and quite bearish in his rhetoric so the sale doesn’t look good.
IIRC, studies have shown that insider purchases are a stronger/better signal than sales. There are many reasons for selling, but only one for buying.
It was from The Black Forest when I last visited Germany, and it’s working very well
From Scott and Xu:
“Most previous studies of insider trading have found that, although insider purchases are typically associated with positive future abnormal returns, insider sales tend to predict small, sometimes insignificant, negative abnormal returns.”
“In the study reported here, a variable for shares traded as a percentage of insiders’ holdings was used to separate information-driven sales from sales driven by liquidity or risk-reduction needs. In the insider trades from 1987 through 2002, only large sales that also accounted for large percentages of insiders’ holdings predicted significantly negative future abnormal returns. Small sales that accounted for small percentages of shares owned not only did not predict poor performance but were correlated with significantly positive abnormal returns.”
Rumor is that he is on his way out in the next few years. Selling a portion would seem to be inline with that move.
Speculation is that he might pursue something political.
Dimon is 67 right now. How long after 70 does he want to keep working? Is there a point, far into the Billions in personal wealth, where another $30M payday just isn’t worth the bother?
Dimon’s personal wealth is estimated at $1.7B now. What if his luck runs out, and he is finally held liable for the illegal stuff that has gone on at JPM, for years, on his watch? What usually trips up the scammers is they get greedy, and keep reaching for one more scam, and they get caught.