September 8, 2024
Microsoft CEO Sells Shares?! Should investors be concerned? We will dive into that shortly!
How volatile is the market!?
Last week, we were still seeing Greed Mode in our weekly Wealth Pulse, but after Friday’s market close, the tide has turned—FEAR has taken over again!
Source: CNN
The S&P 500 has dropped by 4% since its peak on August 30, 2024. With this sudden shift, the question on everyone’s mind is: Is this another opportunity?
Source: Google
Let’s dive deeper into what’s happening and explore some key insights.
Why the U.S. Market Matters (Even in Singapore)
At GoodWhale, we often emphasize the U.S. market, not because it’s the only place to invest, but because it has a significant impact on global markets. If you’re curious about how Singapore or any other market may be affected, you need to pay attention to the U.S.—the “big brother.”
Take the 2008 Global Financial Crisis, for example. The collapse of Lehman Brothers in the U.S. triggered market crashes worldwide, from Singapore to Taiwan. Then from 2010 to 2015, the U.S. Federal Reserve’s Quantitative Easing (QE) program had a ripple effect, boosting not only U.S. stocks but also emerging markets as capital flowed globally in search of better returns.
We get it—many in our community wonder why we focus on the U.S. so much. It’s because understanding it helps us see the bigger picture. But don’t forget, our Wealth Pulse sessions are always here for you to ask about other markets and share your insights with the community.
What’s Behind the Current Market Fear?
This recent downturn stems from the monthly jobs report which led to investors becoming less euphoric about their optimism in AI and tech.
While a weakening job market might suggest an economic cool-down, revised job creation numbers from June and July (showing 86,000 fewer jobs than previously reported) spooked investors. With uncertainty in the air, some people have decided to cash out.
Most megacap tech stocks tanked due to the dump.
But let’s keep our focus on what we can control.
Control What You Can—Let Go of the Rest
As with life, investing requires us to control what’s in our power. We can’t control market movements, but we can control our emotions, our actions, and the investment decisions we make. If you’re investing in something volatile, you should already be prepared for these ups and downs.
And if you’re feeling uncertain, join our Wealth Pulse sessions to build your confidence. We’re here to help ease your worries and guide you through these fluctuations.
Microsoft CEO Sell Shares: Red Flags or Business as Usual?
In the previous post, I wrote about a concern for Microsoft since they were heavily reliant on OpenAI’s service. Check out the post here: Click here.
Recently, Microsoft caught our attention, AGAIN!
On September 4, 2024, CEO Satya Nadella sold over 78,000 shares of Microsoft stock, and CFO Amy Hood sold 38,000 shares the very next day. In fact, Satya has been selling Microsoft shares regularly this year, including in August and March.
Source: Quiver Quantitative
You might wonder if this signals trouble for Microsoft. After all, the company’s stock has seen a 14% decline since its July 2024 high.
The good news? These sales are pre-planned.
Source: Quiver Quantitative
Under the rule 10b5-1 trading plan, Satya schedules these sales ahead of time to avoid any accusations of insider trading. So, don’t be alarmed—these sales are routine and part of a pre-determined strategy.
Source: Microsoft
If you missed the chance to buy Microsoft stock earlier this year, this 14% decline could represent a potential buying opportunity. Let’s talk more about this in our upcoming Wealth Pulse session—don’t forget to indicate your interest for the topic using this form!
