Would you say it’s better to start from the big picture conceptual approach and then find relevant literature on the technicals from the past few years?
I think it’s better to learn how equity long short works and how beta, sector and factor flows work before trying to do activist short selling. The entire type of short selling someone like Chanos does is incredibly difficult to scale as a fund. The “Big Short” opportunities usually come along every couple of years and building an entire fund around it is difficult cause you get your AUM pulled when you underperform.
So depends on what you’re trying to accomplish right ?
Whenever that correlation breaks you either want to be long stocks cause growth is still resilient. Or short stocks and long bonds because the labor market is falling apart and credit risk is rising. Growth will determine which one that is
This man works so hard, i’m still read part 4 of the FX primer 😭😭also would you recommend that book mentioned ( The art of short selling)?
I think it’s a great book. It’s more conceptual and big picture tho. Not very technical.
Short selling is very different today than it was years ago imo
Would you say it’s better to start from the big picture conceptual approach and then find relevant literature on the technicals from the past few years?
I don’t remember them off the top of my head. I’ll have to circle back with ya
Dm me Monday
will do thank you!
I think it’s better to learn how equity long short works and how beta, sector and factor flows work before trying to do activist short selling. The entire type of short selling someone like Chanos does is incredibly difficult to scale as a fund. The “Big Short” opportunities usually come along every couple of years and building an entire fund around it is difficult cause you get your AUM pulled when you underperform.
So depends on what you’re trying to accomplish right ?
Yeah I don’t plan on doing any activist short selling. I’m interested in long short equity trades. Do you have any recommend readings on L/S trades?
When you say, "a divergence in the correlation between stocks and yields on the long end". Do you mean stocks down, duration yields down... Thank you.
Yes
A divergence for the current correlation
Whenever that correlation breaks you either want to be long stocks cause growth is still resilient. Or short stocks and long bonds because the labor market is falling apart and credit risk is rising. Growth will determine which one that is