while I'm not going to directly post the content of the article at , there are probably two important take-aways ...
For those of you who are not 'seasoned investors', one way to trade an approaching decline in a particular company's stock share prices is to 'short sell'. Officially at least, this means that the investor 'borrows' shares of the company's stock from a broker, sells them at today's price and pockets the proceeds ... but must then repurchase the same shares at a later date and an unknown future price in order to return the borrowed shares to the broker. Obviously if the future price is lower, the 'short selling' investor can pocket the difference ( thus profits handsomely). On the other hand, if the future price is higher, the 'short selling' investor must come up with additional funds to cover the difference ( i.e. a loss ).
What's potentially even more 'telling' is the nature of the 50 companies who were 'short sold' so heavily last month. A significant number were related to upscale retailers, as well as to real estate / homebuilding / remodeling.



Reply With Quote
Bookmarks