Selling Short Tanker Stocks

By Matt McCleery

With the tanker market reaching dizzying heights and speculators chasing stocks up to unsustainable levels (See Figure Three), contrarian investors hoping to catch the volatility on the way down are gearing up to do some short selling.

We don’t mean to be grim. It’s just that during the later half of the 20th century, 7 years in every 10 have been either flat or down for tankers. That means that even for those who believe this tanker market will run into 2002, short selling shipping shares is not a question of “if”, but “when.” Since many of our readers are not familiar with selling equities short, this article will provide a basic introduction to what is involved.

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