NY Times: Some Smart Money Getting Cautious On Market Rally

Worthwhile piece on the front page of today’s NY Times business section, “Some Analysts See an End to Market Rally”.

One interesting piece of data from the article was that a report from TrimTabs on Friday showed the ratio of insider selling to buying at about 30 to 1 – the highest levels since the firm started tracking this in 2004.  “You have a classic case of greed stampeding investors into believing that nirvana is at hand.  We just don’t see how the market’s going to last,” said Charles Biderman, TrimTabs Chief Executive.

Jeremy Grantham’s GMO is also taking some money off the table.  “We said that’s enough above fair value that you want to do something.  And we made a move,” said Ben Inker, GMO’s director of asset allocation.  Recall that Grantham was very public in recommending buying back in March.

Doug Kass who called the bottom in March is also getting out.  “I think we’ve seen the high for the year.  There’s a time to hold ’em and a time to fold ’em.  And I think we’re at that point,” said Kass.