DD Support Board and Research Team

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"The Short Selling Environment Has Never Been Worse"

"(Bloomberg) -- Short bets are a tough sell.

The Reddit-inspired short squeeze in GameStop Corp. and other stocks has spurred billions of dollars in losses for short sellers in recent weeks, prompting a rethink of the practice among some investors. Last Friday, Ken Griffin of hedge-fund Citadel declared after Congressional hearings the turmoil will diminish short selling for the foreseeable future.

But the environment for short selling was already among the worst in decades even before the GameStop blowup. Even with this week’s sharp selloff, broad gains in equities in the past year have made it difficult to bet against almost any one stock.

The most-shorted stocks have gained 112% since last March while the least-shorted names rose 40%, according to a Scotiabank analysis. In January, when GameStop gyrations gripped markets, a record was reached between the most- and least-expensive stocks to borrow with the most expensive outperforming the least by 29%, according to IHS Market."

https://finance.yahoo.com/news/short-selling-environment-never-worse-190457683.html