Sinking Short Stack
Most investment strategies are based on the idea of 'buy low, sell high,' which makes sense since the market as a whole trends upwards over time. However, that upwards trend does not mean that there will not be certain companies or sectors that will trend down, even as the market trends up. Or, perhaps, there may be periods of time where most securities will trend down consistently, and oft times painfully. Though there is unabashed uncertainty when it comes to market movement, this column was created for the purpose of devising short strategies to hedge risk in a down market, and to capitalize on overvalued stocks.
July 27, 2007 Mentioned Stocks: AAPL | AMZN | BBI | CMCSA | CVC | DTV | NFLX | TIVO | VZ
|
Mentioned Stocks: CRM | GOOG | MSFT | ORCL | WMT |