Fuel for the rally could be waning as short sellers lose confidence and cover their positions. Bespoke investments reports:
It just keeps getting lonelier on the short side. As of the end of August, the average short interest as a percentage of float for stocks in the S&P 1500 stood at 6.6%, representing the lowest level since February 2007. Over the last six months, the balance of power has shifted from the sellers to buyers. With the short side now being the loneliest trade, will the roles reverse again over the next six months?
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.