Currently, short positions are being taken by individual investors like David Woo, who cites tariff impacts as a reason to short, and firms like Citron Research and Kynikos Associates, which have notable short-selling histories. Additionally, many are shorting specific stocks and sectors, such as those with high valuation multiples, with an eye on market downturns and the effects of AI investments.
Individuals and firms shorting the market
- David Woo: Is shorting both stocks and bonds, believing the full impact of tariffs has not yet hit the market, notes CNBC.
- Citron Research: Founder Andrew Left has publicly stated that certain stocks are overvalued, according to Morningstar and MarketWatch.
- Kynikos Associates: Founded by Jim Chanos, this is a prominent short-selling firm.
- Spruce Point: Has published short reports that have impacted some stock prices, notes Institutional Investor.
- Michael Burry: While not currently shorting, Burry has issued warnings about a potential market bubble, according to TipRanks and Yahoo Finance.
Specific stocks and sectors
- AI-related stocks: Some short sellers are targeting companies with high valuations in the AI sector, including Palantir Technologies Inc..
- Companies with high multiples: Various reports highlight shorting of companies with high revenue multiples and minimal operations.
- Diginex and SuperX AI Technology: Are specifically mentioned as overvalued stocks that are being shorted, according to Seeking Alpha.
The total short position for the US market is not a single, static figure, but recent data indicates the short interest in the S&P 500 was $820 billion at the end of 2024, a record high. More broadly, one source estimates the total regulatory-reported short interest across all U.S. stocks is around $1.55 trillion.
- S&P 500: At the end of 2024, the dollar value of equity shorts in the S&P 500 reached a record of $820 billion.
- Total U.S. Market: Another estimate places the total U.S. regulatory-reported short interest at approximately $1.55 trillion.
- Fluctuations: The total short position is not static and changes based on market conditions. For example, the S&P 500 short position has a history of fluctuations, with a slight decrease from the previous year's high of $820 billion in 2024 to $721 billion in 2023.
