A popular Wall Street blogger vowed to never short the stock market again — until now

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This financial blogger says the stock market's recent rally has created one of the best setups to bet against equity assets that he's ever seen.

The author of the well-read Wall Street blog says that the U.S. stock market’s recent rally has created what he describes as one of the best setups to bet against equity assets that he’s seen in his career in financial markets. “In my decades of looking at the stock market, there has never been a better setup. Exuberance is pandemic and sky-high,” Richter wrote in a Dec. 30 blog.

So why is Richter willing to break his anti-short declaration in a market that has so far managed to break out to all-time records? Richter said the recent enthusiasm surrounding Tesla, an asset that itself has been a notable pain trade for short sellers, bleeds into the rest of the market, and rather than short, or bet for a decline in the value of an individual stock, he sees shorting the broader market a smarter strategy.

 

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