As of recent there has been a mass selling of shares from large corporations namely, Jeff Bezos, Mark Zuckerberg, and Jamie Dimon from JPMorgan. Bezos offloaded over 50 million shares worth 8.5 billion of Amazon in only nine days. Zuckerberg sold almost 1.8 million shares for more than 400 million this last month. And Dimon cashed in 822,000 shares at about 150 million in total.
This could be pointing to several things including just basic economic standpoints such as just an occasional sale since it was already announced in trading plans, months in advance, that they were going to do this. They could have also lined up shares because their stocks were ballooning in value. It could have also been disposable stock which could have been put in place for tax reasons, etc.
Conversely, this could also signal a gradual decline in confidence in the economy, though marginal compared to their actual wealth holding. Notably, they hadn't been buying shares which means their shares could be fully valued, and its time to take some off the table.
https://www.businessinsider.com/bezos-dimon-zuckerberg-amazon-jpmorgan-meta-stock-sales-billionaires-wealth-2024-2
7 comments:
this is quite interesting i think this could also include some personal reasons as well as have something to do with tax strategies
Always interesting to guess how events like these will affect the economy in the future. I think usually it doesn't mean much for everybody else, more that these men are trying to protect themselves from taxes, but events like this seem to alarm everybody usually.
It is always surprising, to see how the rich in general always seem to know more than the general public knows. It will interesting to follow this to see if they are correct about the market again. Also, does all of this selling of shares have a direct impact on the market?
Quite interesting to see how the wealthy always come up with ways of paying less taxes. I personally didn’t know how selling stocks could be advantageous for tax planning purposes. Also makes me wonder what types of implications these huge transactions have in the market.
There has also been some concern of how the attitudes of governments toward large firms are changing. This is coming off the new trend of antitrust cases against massive firms such as Amazon, maybe it's a protectionist measure. Probably just adjustments for taxes though.
Although I am not sure this is because they believe markets have hit a peak, if that was the case it would be interesting to see if we observe the kind of self-fulfilling prophecy we normally see in the economy where because they believe markets have hit a ceiling they sell shares and then cause the prices to fall because of this. However, I think it is probably more likely that there are less serious reasons for these actions.
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