The short sellers have been out in force over the past week and that means some are preparing for some nasty surprises. Two-thirds of stocks in the benchmark S&P/ASX 200 index attracted additional shorting over the past week. Flight Centre, Skilled Group, Kathmandu, Arrium, Kingsgate Consolidates, and Fortescue Metals were among the most popular stocks to short sell.
Perhaps the sell-off in the junk bond market will be seen as a turning point, along with former US Federal Reserve chairman Alan Greenspan’s comments this week
Stocks linked to the US economy should also do well as the economy continues to recover. The Fed has made it clear it will be a gradual process and markets should be able to cope with any move as it’s likely to be so well flagged.
