Lets be honest guys. We are heading into a recession, or at least a nasty correction. I am going to short financials and energy. What do you guys see as the best shorts...either sector or specific stock? Here are my four picks... $BAC $MFRM $NFLX $CVX
The S&P500 seems to be down about 7% so far this year. The large majority of my bigger holdings are either positive or flat, I do have quite a few decliners on the "play money" part of my portfolio, that is higher risk stuff that I buy with tiny amounts. Everyone says this year has been "catastrophic, horrible, worst thing ever" but to be honest it's looking ok. Actually, apart from CL, I have been quite pleased with the quarterly reports as well as their 2016 outlook. And in the end I'm not much of a short guy. I might, at some point, short the s&p500 to protect my portfolio against a bigger market downturn. But I feel it's quite a risky thing to do, so I prefer to keep some cash and the possibility of leverage. I can use those to buy more if there is a large decline, and profit like that in the long term.
I've got a few bucks in SH, and puts on a number of the sky high tech names - NFLX, AMZN, TSLA, FB, etc. Also puts on retailers such as SHLD and JCP, and auto manufacturer FCAU that I previously had very profitable short stock positions on for a while when they were more expensive. Also some puts covering small long positions in a number of small/mid cap biotechs and a few drillers as well.
Yeah, the Fed hasn't don't a good job reintroducing rate hikes, and there is no sign of energy really bottoming, from what I can tell.
For those with big money to spare, I would suggest real estate instead of stocks. But if the stocks is the only choice, the blue chips are still ahead in the game although an exception are stocks of oil companies which today is very volatile and unstable. In Asia, shares of mining companies appear stable according to our sources maybe because it is the alternative of those investing in oil shares.
I am shorting Texas, Saudi Arabia and Nigeria. I was reading an article today about the real estate problems that are going to happen soon in Texas, might be worth looking at some REITs that are focused there.
I am starting to think real estate is the best way to go short term at the moment. Home values are rising where I live and seems as though all of my stocks in my retirement account are losing money at the moment. I forsee some scary times to come.
