After taking months of beating, and retreating from the market, short-sellers are now coming back. Bets against the Standard & Poor’s 500 Index rose for the first time since March, Bloomberg reports.
Short interest on the S&P 500 climbed almost 1 per cent in the first two weeks in June, to 9.8 billion shares as of June 15. The health care sector was particularly targeted by shorts, many of whom believe President Barack Obama’s proposed reforms will diminish profits in the sector. Short interest in health care rose 7 per cent.
In one area, however, it seems short-sellers are still wary. That’s the financial sector. Short interest in financials dropped 2.5 per cent in the first two weeks of the month.