You can tell a lot about the future prospects of a company by watching the planned buys and sells in stocks by its insiders. These insiders include the directors, executives, and founders. For investors it’s a positive sign when a company is buying their own stock because it means that they are confident about their prospects. But when a company is selling its stock it could mean that they think their stock is fully valued already. This is exactly what is happening to the FAANG stocks.
FAANG executives have been selling lots of their stock at once. Like Mark Zuckerberg (CEO of Facebook) for example. In September 2017 it was announced that the company would be selling 35 million to 75 million of their shares spread over 18 months. That would be worth $6.1 billion and$13.1 billion and would be one of the biggest insider sales to date.
This is why experts are now advising to not only look at and focus on FAANG stocks, which have been enormously popular in the last few years, but also giving other investments a good look. For example, they recommend give international stocks a shot. There are numerous well-known companies abroad that offer shares with good valuations which are definitely worth considering investing in. Some experts are also looking into investing in gold instead of FAANG stocks. For them, it’s a good asset which will provide protection in times of market volatility.