JEAN PIERRE VERSTER: Hold on to your shorts!

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JEAN PIERRE VERSTER: Hold on to your shorts!
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It's been a savage year for the market's longs - but for (some) short-sellers, 2022 has been a windfall. Of course, you'd have had to pick the right stocks; we take a look at some remaining options

It’s been a savage year for the market’s longs but for short-sellers, 2022 has been a windfall. Of course, you’d have had to pick the right stocks; we take a look at some optionsIt’s been a horrible year for global investors so far. Equity and bond markets have concurrently experienced three negative quarters in a row, which is unprecedented.

How much lower can markets go? It is impossible to say, but judging by the exuberant excesses observed last year , there is still some way to go. Short positions would have offered some protection for your portfolio, but after a few sharp falls, shares that are grossly overvalued are becoming difficult to find. Let’s consider whether this year’s five worst-performing shares in the MSCI world equity index are still good shorts...

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