In the last few months of 2018, if someone continues to make big money in the stock market, then he is in all likelihood a short position in the market. This line has existed for a long time, mainly by shorting some stocks that they think are “overvalued”, and some high-profile institutions will make money by reporting improper accounting or even fraudulent behavior of listed companies.
Viceroy Research founder Fraser Perring said whencurrencyAt lower costs, people tend to ignore corporate fraud or improper accounting practices. And in the cost of money (interest rateIn the process of gradual rise, sudden risk events emerge one after another. If 2019 is not a good day for short sellers, then I don't know when it is.
Perring specifically pointed out the beginning of the new yearappleThe story of 10% of the decline, pointed out that only two analysts on Wall Street reminded investors to sell before Apple plunged, while more than 20 institutions gave a buy rating. “Why are most professionals encouraged to buy this stock, and the stock price has exploded overnight?”
(Even if you don't consider a night's plunge, Apple's daily trend is enough to show how bad the stock has been in the past three months. Click here to start trading easily~)
New targets for the shorts: the UK
In the past 12 months, the short-sellers in the global market have made a lot of money in the fall of US gold cannabis stocks. According to a report by research firm S3 Partners, the shorts of short-selling US cannabis stocks in December were a total of $430 million. However, with the recent rebound in stock prices, the shorts need to find new targets. The UK stock market, which is about to face the Brexit limit, has become a natural focus.
AJ Bell Investment Director Russ Mould said that the UK stock market can only be described as a tragic word. Last year, the FTSE 100 index fell more than 12.5%, and the market value evaporated to 242 billion pounds. It can be said that London is really "no friends".
According to research by data research firm Short Tracker, earlier short sellers were more concerned with e-commerce-impacted retail companies such as Marks & Spencer. But the current situation is that more companies in different industries are betting short, indicating that the shorts are betting on the overall collapse of the UK stock market.
The harvest and sadness of the bears
In the past year, Viceroy Research has blocked the gaming stock Jackpotjoy and packaging giant RPC.Jackpotjoy in the UK market by more than 30%, RPC fell by 13%, and the two transactions have caused the two stocks to evaporate more than 6 Billion pounds. In addition, the British Navy's outsourcing company Babcock was also pointed out in 2018 to "systematically cover up negative news and mislead investors."
(Stocks and performances shorted in the UK stock market, source: This is Money)
Of course, there are reasons why most shorts are not willing to "show their faces." Two years ago, Perring sent her daughter to school and found two Eastern European accents sitting in his car, threatening whether he was the one who posted an anonymous report about the payment company Wirecard, and Perring escaped by lying.
In 2012, the British government resigned from full-time short stocks. Perring has already purchased properties in London, New York and Oregon. Nowadays it is a racing car. Recently he just bought a Mercedes AMG worth £200,000.
For the market's accusation that short-sellers use the analysis report to “manipulate the stock market” and make a profit, Perring asks, how does the market look at sellers who have always given a buy rating?AnalystWhat? Some of them are collecting money to write reports, while others are counting on them to attract new customers.
(Article source: WEEX)