Wall Street Journal (August 8)
2023/ 08/ 09 by jd in Global News
“July’s gains left hedge funds closing out so-called short positions and cutting risk at the fastest pace in years.” As they race to cover their shorts, they are “providing yet another tailwind for stocks, which have rallied this summer on optimism that a strong economy can withstand higher interest rates.” The rally caught many “short sellers off guard,” and as they “buy the shares back at a high price to limit further losses,” additional demand can drive “prices go even higher.”
Tags: Cutting risk, Gains, Hedge funds, Interest rates, July, Losses, Optimism, Rally, Shares, Short positions, Stocks, Tailwind
