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5 Reasons to Go Short in 2010

Jan 15, 2010, 4:50 am EST   |   By Michael Shulman
      

market crash

30 Dead Dividend Stocks to Avoid At All Costs

#2 Stocks Go Down Faster Than They Go Up

With almost zero chance of a repeat rally in 2010, and a renewed focus on fundamentals, good, old-fashioned stock-picking will come back into fashion in the new year. And while there is money to be made on the long side from the fundamentally sound stocks, there’s even more money to be made by shorting the lousy ones that ran up way too high in 2009.

This is because you can make more money and you can make it faster when a stock goes down versus when it goes up. Think about it, Citigroup (C) went from $40 and change to a buck in just 18 months. It won’t be $40 again (if it is still in business) in 10 years.

Article printed from InvestorPlace Media, http://www.investorplace.com/2010/01/shorting-stocks-in-2010-with-put-options/.

©2012 InvestorPlace Media, LLC

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