"The Age of Fraud." The main "shortist" of the USA advises to bet against the market

"The Age of Fraud." The main "shortist" of the USA advises to bet against the market

The financial market is going through a "golden age of fraud" and is heading for big problems - this is convinced one of the leading experts in short positions Jim Chanos
American investor and famous "shortseller" Jim Chanos predicted problems for the US market. They can be earned by opening short positions  . The words of the businessman are quoted by MarketWatch with reference to an interview with the Financial Times.

"It is that this market will be one of the greatest opportunities for short bets. Problems are coming. I don't know when they're going to be confronted, but they're coming," Chanos told the FT.

"We live in a golden age of fraud," Chanos added. According to him, the hallmarks of the modern market Securities  are the pervasive euphoria, the fear of missing out on the opportunity to earn and the "Trumpist" politics based on the post-truth. All this creates conditions for deceiving investors, Chanos believes.


Jim Chanos is an investment manager known for betting on companies in the stock market. "Shortsellers" earn on shares as follows: they borrow shares from the broker and immediately sell them at the current market price in the hope that after a certain time it will decrease. Then you can buy back the papers cheaper, return them to the broker, and keep the difference in the form of profits.

Chanos became famous for several famous "shorts" of large Issuers  . In the early 2000s, he earned a profit from the bankrupt American energy corporation Enron, and in 2020 he made a profit of short positions in two companies - China Luckin Coffee and German Wirecard.

The investor is also betting on the fall of Teslashares, which this year several times rewrote historical highs and can be included in the broad market index of the S'amp;P 500. "Elon Musk has personalized the hopes and dreams of this bull market," said Chanos, who said Tesla has a "developed culture" of misleading the market.

Chanos manages his own kynikos Capital Partners fund. According to the FT, over the past 35 years, the company has generated about 25% of its annual profits to investors.


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