New York, NY (PRWEB) June 28, 2012
According to George Leong, contributor to Profit Confidential, technology and growth stocks are being sold by institutional investors. Leong believes that following where the professional money is flowing gives investors another tool to evaluate the stock markets and to get a sense of what is happening.
In the article “Why the Pros Are Dumping Tech Stocks in Favor of Boring Companies,” Leong goes into specific details to back up his theory.
“Apple Inc. was trading at $644.00 on April 10, but the stock has been on a steady decline down to the $570.00 level,” reports Leong. “The institutional investors’ ownership shows a 3.09% net sale of Apple stock over the last quarter to quarter, representing 19.23 million net shares sold by institutions.”
“I see a pattern with the net selling of other key technology stocks, including heavy selling in priceline.com Incorporated with 2.96 million net shares sold, down 6.26% in institutional ownership,” says Leong.
Leong also sees institutional selling in Google Inc. and Amazon.com, Inc.
The concept of following the money of institutional investors is based on the belief these experts are likely to understand the company’s situation more than anyone outside of the executive management group.
“By looking at the flow of money from institutional investors and monitoring what stocks they are buying, you can get a much better sense of what stocks may be in favor at that time,” says Leong.
Institutional investors control vast sums of capital and can sway the direction of a stock that they buy or sell.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.