Tuesday, June 23, 2009

New Short Positions.

I've reorganized my portfolio. I am no longer short the broader market, but rather specific companies.

I am short the following companies:
KB Homes (NYSE: KBH)
Lennar (NYSE: LEN)
Regions Financial(NYSE: RF)
First Horizon (NYSE: FHN)
Zions Bancorp (NYSE: ZION)
New York Community Bankcorp (NYSE: NYB)
Capitol One Financial (NYSE: COF)
MBIA (NYSE: MBI)
Direxion Daily Financial Bull 3X Shares (NYSEArca: FAS)

As you can see, I am short the homebuilders, the smaller regional banks, and the ever-present FAS. I expect commercial real estate to be a train wreck, I expect many regional banks to fail, and I expect home builders to sit there with a product no one wants to buy.

With Capitol One, I expect many more people to default on their credit cards, especially as the major companies play chicken with each other to cut off credit. We will hit 10% unemployment very soon, and more people will lean on credit cards and then not be able to pay them off. I'll expand on all of this in later posts.

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