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SHORTING STOCKS IN A BEAR ECONOMY

post #1 of 5
2/4/07 at 6:56pm
Thread Starter 
I personally think we're headed for a bear economy within 3 years and I am studying and trying to get a bearing...haha......on what are the best sector stocks to short when the economy, at some point starts taking a nose dive....

I've been hearing housing stocks and especially biotech stocks will be good to short...

if anyone wants to add to this.....it will help prepare us for what is possibly ahead and if you don't want to think in that direction, it would be good to know anyways, to keep in the back of your mind for when things do start to turn...

with the ever weaker dollar and the trade deficit with china, IMO, the writing is on the wall......also if the bears wint he superbowl, that might be a prophetic sign of a bear economy coming.....just in case you beleive God gives such warnings....haha.....ok......feel free to add
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post #2 of 5
2/4/07 at 10:17pm
A weak dollar is not necessary a bad thing. Some countries purposely devalue their currencies.

I'm pulling for commodities to unwind fast as speculators move on to better things. And of course housing, it has had a soft landing but when the money moves to bonds the rug could be pulled under from the housing markets.
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post #3 of 5
2/5/07 at 12:40am
I'd say whatever the highest performing sector is when the market was running would be the best to short (but what do I know). Personally, I might chase after airlines...
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post #4 of 5
2/5/07 at 9:14am
My only question here is, (to the veteran shorters around here), is it easy to find common stock to borrow and short in a bear market? Or is it hard because everyone is doing it?
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post #5 of 5
2/5/07 at 5:57pm
Tech is wear everyone will look to if shorts do come in (something I am not at all agreeing with at this time).

But just cause tech imploded last time doesn't mean it will this time.

Look at inflated stocks like RIMM, AZO, a few others...

Do not be bored by their lack of volatility relative to pennies. If we were to get a serious bear market these things will shed 40-50% easily.

I wouldn't touch housing as a short. It's already gone down. Look at JOE's long down-trend. An example of a good hold for a short, making some bank.

JRCC was one heck of a short too if you caught it

I'll come back with a more detailed list of thoughts.

p.s. Everyone has it out for the GOOG. In fact, it might be too much in the spotlight to really bank on... Same with GM, F...
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