Reply #7: Wall Street Bears Look to '05, Nurse '04 Wounds [View All]

[54anickel]

http://www.reuters.com/newsArticle.jhtml?jsessionid=EN3CXQQL5GHMICRBAEKSFEY?type=reutersEdge&storyID=7209498

NEW YORK (Reuters) - After ending the year with a whimper, Wall Street bears are foraging for new prey, with home builders, banks and oil producers likely targets.

Short-sellers, or bearish investors who profit from stocks falling, are also holding on to their bets that high-flying Internet stocks will be humbled in future quarters.

And while the fate of these sectors remains uncertain, many financial experts say rising interest rates, decelerating earnings and an economic slow down could put the majority of short-sellers in the black this year -- the first time since 2002.

"Most people think it's going to be a banner year for short-sellers," said Harry Strunk, an investment consultant based in West Palm Beach, Florida who has tracked short-sellers for more than 20 years. "There seemed to be a lot of speculation in the late-year rally. The expectation is that the market will return to fundamentals next year."

This year, in fact, looked to be a banner year for short-sellers, with the market flat for most of 2004.

Then November rolled around. :eyes:

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