Fleckenstein Capital’s twelve-year-old short-selling fund that shut down last December is planning to start hunting around again for opportunities.
Yet they’re waiting until after earnings season, and could even wait until early next year.
For Fleckenstein Capital, while 2010 could be a very rough year for the market, 2009 could end strong. Even these shorts don’t want to step in front of earnings season right now.
Bloomberg: Future bets against U.S. stocks will “almost certainly” include technology companies, especially semiconductor makers, Fleckenstein said.
“They’re going to report good earnings, but a lot of it is a function of double- and triple-ordering, so their businesses are going to look better than they really are,” he said.
In a Bloomberg TV interview, Bill Fleckenstein said he expects weak businesses to run into trouble next year, especially if rates start rising. Nevertheless it appears he wants to see the economy’s “less worse” trend come to an end before he takes action.
What does he favour in the meantime? Shares in gold related companies.