Since shorting these stocks can be expensive and difficult, investors can bet against micro-bubbles by going long the stocks that should rise when the micro-bubbles burst. In Part 1, we identified five stocks that were well positioned to rise when the micro-bubble stocks we listed in “Bursting the Micro-Bubble Part 1” fall. Three of these micro-bubble winners have outperformed the S&P 500 since the article was published.
This week, we’re doing the same for the stocks in “Bursting the Micro-Bubble Part 2”. We think these stocks will see a lot of capital flow to them when the second micro bubble bursts.