Charles Incledon, Client Director quoted in Opto Magazine 26th September 2022
“Retailers are the expected to bear the brunt of the UK’s cost of living crisis. The shares prices of many of the UK’s ecommerce giants have already fallen heavily. Many of those short positions are still in place meaning investors think there’s more to come.”
“With interest rates rising and no end in sight to soaring energy prices, there could be more pain to come for retailers’ share prices. When household spending gets squeezed, it’s usually shares in consumer-facing businesses that take the hit.”
“Many hedge funds which have shorted retailers this year are likely to have made significant returns. However, it is not always easy to get these calls right.”
“Markets can be unpredictable and investor sentiment can quickly change. This can catch short sellers out and rapidly lead to big losses. Retail investors are normally much better off with a long term buy and hold strategy.”
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