Short Seller Moving From Financials

Posted by Bull Bear Trader | 9/11/2008 02:41:00 PM | , | 0 comments »

During Jim Chanos's recent appearance on CNBC, the famous short seller mentioned that financial stocks have probably seen the worst and that his fund now has fewer short positions in financial stocks than it did in the recent past (see Reuters article). He also feels that most of the bad news is already known and priced into the financials. As an alternative, Chanos is now shorting companies involved in commodities, in particular "... companies that might depend on cement prices or steel prices going up." Certainly not good news for the automotive, infrastructure, and housing markets.