rank the shorted stocks by total value of short interest, or, in layman's terms, the amount bet that the stocks will go down. The results fortify my argument that we're facing a mild recession: the list includes iconic American companies across various industries.
In order to determine how much funds are expecting the following stocks to drop, it's important to consider the companies' market caps. For example, a $1 billion short bet against a $10 billion company would anticipate a more precipitous decline than a $1 billion bet against a $100 billion company. Nevertheless, funds' positions anticipate an overall decline in stocks from well-known companies representing most segments of the economy.
Hedge Funds' Top 10 Shorts
Intel Corp. (INTC): $4.3 billion of short bets (semiconductor industry)
Verizon Communications (VZ): $2.1 billion (telecom)
Gilead Sciences (GILD): $2 billion (pharma)
Chevron Corp (CVX): $1.8 billion (petroleum)
Walt Disney (DIS): $1.8 billion (media/entertainment)
AT&T Inc. (T): $1.7 billion (telecom)
Ford Motor Co. (F): $1.6 billion (automotive)
Wal-Mart Stores, Inc. (WMT): $1.6 billion (retail)
Caterpillar Inc. (CAT): $1.5 billion (construction equipment)
Intuitive Surgical, Inc. (ISRG): $1.5 billion (medical equipment)