Jim Chanos: “It’s a bear market rally”
Jim Chanos, the famous hedge fund guru and short-seller does not think stocks are going to be up for long. He sees the recent rally on the back of promised government stimulus as temporary and expects markets to resume their downward course. In fact, he is now shorting cement as a play on continued weakness in construction.
This is what he said according to Bloomberg News:
“It will not be profitable to the extent that people think,” Chanos, whose Ursus Fund has risen more than 50 percent this year, told Bloomberg Television today. “People are forgetting that there are always promises of infrastructure plans.”
“It’s a bear-market rally.”
While there are many bargains in the market, I certainly think Chanos is right.
Jim Chanos Sees Stock Rally Faltering, Shorts Cement – Bloomberg