Why You Need to Short Stocks Right Now

Gary Gibson: Dan, you said the summer should be the best environment for short selling since 2008. That implies a lot of declining stocks. How bad is the outlook for stocks really and why?

Dan Amoss: Okay, well I start from the assumption that most economists and analysts are ignoring the importance of balance sheets. There’s way too much bad debt in the global economy, and governments and central banks are trying to paper over these bad debts.

And the consequence of this is that governments will eventually reach the limits of what the market will allow in terms of debt to GDP ratios. At that point, it will be hard for the economy to both grow and service the incredible burden of debt that it has. (more)