Global hedge funds built bearish positions this week to the highest level in nearly five years, Goldman Sachs said on Friday, without citing the underlying reasons.
Shorting a stock is the opposite of buying it. When you buy a stock, you expect that its price will increase, therefore you will be able to sell it for profit. When you short a stock, you will profit if the price decreases in the future.
How? You borrow a stock and are obliged to return it some day. You sell the stock when you get it, and buy one from the market when you’re due to return it. If the price has went down, then you’ll have profited.
What does this mean?
looks like hedge funds are expecting the market is gonna crash
Shorting a stock is the opposite of buying it. When you buy a stock, you expect that its price will increase, therefore you will be able to sell it for profit. When you short a stock, you will profit if the price decreases in the future.
How? You borrow a stock and are obliged to return it some day. You sell the stock when you get it, and buy one from the market when you’re due to return it. If the price has went down, then you’ll have profited.
Yeah, soubds reasonable but I mean what does it mean in the context of US economy rather.
oh, then like yogthos said they expect the market to crash (or at least get worse)