Following the November 5 presidential election, the U.S. stock market experienced a significant rally, prompting numerous companies and funds to sell off their holdings, capitalizing on rising stock prices to secure substantial profits.

According to Bloomberg, from November 5 to November 14, stock sales by companies listed on the New York Stock Exchange exceeded $4 billion. For the year to date, total stock sales have reached $68 billion, a notable increase from $43.8 billion during the same period last year.

Major transactions include:

General Electric's Aerospace Division: Sold $1.2 billion worth of GE Healthcare Technologies shares to repay loans.
AIG: Divested 30 million Corebridge Financial shares, worth approximately $936 million.
Private Equity Firms: Sold $735 million in Clearwater Analytics Holdings shares.
Market analysts attribute these sales to a convergence of events, including Q3 earnings reports, the presidential election, and the Federal Reserve’s interest rate cuts. These factors have fueled optimism in the economy, driving up stock prices and providing a prime opportunity for profit-taking.

Notably, Warren Buffett’s Berkshire Hathaway has also reduced its stock holdings, significantly increasing its cash reserves to an all-time high of $325.2 billion as of Q3 2023. Berkshire has sold portions of its stakes in companies such as Apple and Bank of America, citing overvaluation in the stock market.

Buffett's actions align with the "Buffett Indicator," which measures total market capitalization against GDP. Currently, this metric is near 200%, indicating overvaluation similar to levels seen during the tech bubble. Additionally, U.S. Treasury yields are surpassing stock returns, further incentivizing stock sales.

With Thanksgiving approaching and year-end trading activity typically high, analysts predict continued active trading in the stock market.