The New York Stock Exchange was a difficult terrain for short sellers in 2023. (Image Shutterstock)
Betting on falling prices of US and Canadian stocks cost short sellers almost $2,000 billion in paper losses in 2023, a study found.
Given the strong development of the market, 2023 was an “extraordinarily difficult year” for “short sellers,” said data provider S3 Partners Research. The broader S&P 500 index of US stocks had gained 24.2 percent, the technology-heavy Nasdaq 43.4 percent. The total of all short positions amounted to $957 billion, S3 reported.
According to the survey, the biggest losses occurred in bets against the six high-tech companies Tesla, Nvidia, Apple, Meta, Microsoft and Amazon. However, some investors could still have made money from short selling, such as during the banking crisis in March. First Republic Bank stock, which was eventually acquired by JPMorgan Chase, was the most profitable short bet of the year, with a profit of 840 percent, or $1.6 billion.
2024-01-05 08:37:12
#North #America #billions #losses #short #sellers
