News > Capital Markets

People Moves: Deutsche names new APAC corporate & investment banking chief; Barclays appoints new head of semiconductor research
Capital Markets
<p>Deutsche names James McMurdo APAC CIB chief. McMurdo, who will remain as the bank’s chief executive in Australia “until further notice,” will be replacing 25-year Deutsche Bank veteran John McFarlane. Prior to joining Deutsche, McMurdo was co-head of investment banking for Goldman Sachs in Australia and New Zealand, and worked on the firm’s sponsors group in London and the Middle East even before. He will be based in Hong Kong and will report to Gunit Chadha, chief executive of Asia Pacific, as well as to Jeff Urwin, the head of the corporate and investment bank. Sydney Morning Herald/Wall Street Journal</p> <p>Soc Gen appoints James Shekerdemian head of APAC prime services. Shekerdemian, the French bank’s current global head of prime brokerage sales, will be succeeding Laurent Cunin, who is said to be pursuing other opportunities. He will continue to be based in Hong Kong and will report locally to Frank Drouet, the firm’s Asia-Pacific head of global markets, and globally to Chris Topple and Christophe Lattuada, Soc Gen’s co-heads of prime services. Asia Asset Management</p> <p>Barclays names Bruce Lu head of semiconductor research, Asia ex-Japan. Lu, an old hand in the semiconductor industry, will be taking direct responsibility for the firm’s Greater China technology semiconductor team. He joins Barclays from CLSA, where he held a similar role, and reports to Bhavtosh Vajpayee, Managing Director, Head of Equity Research- Asia ex-Japan, according to a memo seen by NexChange.<br /> Photo: Wendy</p>
Are we at a market peak?
Capital Markets
<p>The question that seems to be occurring to more and more people is, “Are we at a market peak?” It has been a multiyear bull market, stock prices have tripled from the base, profit margins have been at record highs for years, and now interest rates are going up. It’s not a crazy thought.<br /> Signs of a peak<br /> Mega-mergers have taken off, the most recent being the SABMiller merger with Anheuser-Busch Inbev. Technology companies are rocking, with multibillion-dollar valuations for Airbnb, Uber, and many others. It sounds like we’ve seen this movie before.<br /> We may indeed be at a short-term top, as valuations are stretched, and it may take some time for earnings to catch up. The question behind the question is, “Are we at a roller-coaster top, one that will be followed by a precipitous decline?” Again, this is not a crazy thought, as the last two tops—in 2000 and 2007—have been exactly that. The last thing anyone needs right now is another 50-percent decline in the market.<br /> Look at the past<br /> The thing to remember is that big drops, like the past two, are not the result of just the markets but of a combination of the markets and the larger economy.</p> <p> In 2000, the economy was running very hot, with unemployment at all-time lows and wages growing quickly, powered by stock market valuations over twice as high as what we see right now.<br /> In 2007, we had a multiyear real estate boom, loading bad debt in the financial system.</p> <p>In both cases, we had a massively overvalued market combined with a drastically slowing economy—resulting in massive market declines.<br /> Things are not nearly so out of balance now. Although the market is expensive, it’s not nearly as expensive as during the previous two booms. The economy is starting to grow more quickly but is hardly in boom times. The systematic imbalances that drove the last two crashes don’t exist yet, meaning we don’t have either of the two preconditions for a serious decline.<br /> View from the second story<br /> This doesn’t rule out a lesser pullback. As we recently saw, you simply can’t crash as hard jumping out of a second-story window as you do from a tenth-story window. Right now, at the second story, we may see some damage eventually, but nothing like the last two downturns.<br /> This analysis is comforting for right now, but it also points to a future we should be worried about, as another major decline would be all too possible. Right now, the economy is still growing, and the Fed is still stimulative. But at some point in the next couple of years, growth will start to overheat, and a recession will inevitably come. At that point, if the market were to follow past practice and continue to appreciate, valuations could be even higher than they are right now—and that would fit thepreconditions for a major market decline.<br /> Is a major decline coming?<br /> If we agree that two things are necessary for a major decline—a recession in conjunction with significant market overvaluations—we arrive at the conclusion that we have, at most, only one of those right now. In fact, I would argue that market valuations are not high enough to warrant the “significant” title, so perhaps only one-half of one of the conditions. Good news for the present. We can, however, see a not-too-distant future where we will have both. This is what I will be watching.<br /> Brad McMillan is the chief investment officer at Commonwealth Financial Network, the nation’s largest privately held independent broker/dealer-RIA. He is the primary spokesperson for Commonwealth’s investment divisions. This post originally appeared on The Independent Market Observer, a daily blog authored by Brad McMillan.<br /> This story first appeared in Advisor Perspectives</p> <p>Photo: Patrick McGarvey</p>
Daily Scan: Fed commentary shocks markets, stocks fall
Capital Markets
<p>Updated throughout the day</p> <p>November 12</p> <p>Stocks had a terrible, horrible, no good, very bad day after all the Fed comments sent mixed messages. The Dow lost 1.4%, the Nasdaq fell 1.2%, and the S&amp;P 500 dropped 1.4%. The Stoxx Europe 600 lost 1.6% as well. Federal Reserve Chair Janet Yellen spoke Thursday morning about monetary policy in general, but didn't comment on the outlook for the U.S. economy. New York Fed President William Dudley and St. Louis Fed President James Bullard both seem to be leaning toward a rate hike. Bullard called the near-zero interest rate policy a "considerable risk of future inflation" for the U.S. economy. Chicago Fed President Charles Evans was a bit more hesitant, saying it could be "well into" next year before the inflation goal is reached. The Wall Street Journal found that 92% of economists think the Fed will vote to raise rates in December.</p> <p>Here’s what else you need to know:</p> <p>Goldman Sachs promotes 425 people to managing director. Almost 30% of the new managing directors are millennials. About 40% of those were hired at Goldman as entry level analysts, and 20% began as summer interns. Loyalty counts somewhere! Business Insider</p> <p>Amundi shares rise after debut. The massive French asset manager's stocks were up about 4% on the Euronext stock exchange in Paris. Societe Generale, one of the banks behind the manager, sold a 20% stake and raised about $1.6 billion. The offering was priced at 45 euros a share Wednesday. New York Times</p> <p>Robots could steal 80 million U.S. jobs. Andy Haldane, Bank of England chief economist, says that 15 million U.K. jobs and 80 million U.S. jobs are at risk from automation. “The smarter machines become, the greater the likelihood that the space remaining for uniquely-human skills could shrink further,” says Haldane. MarketWatch</p> <p>Deutsche Bank keeps moving executives. The top officials of the investment bank are shifting, with Goldman Sach's Alasdair Warren appointed as head of corporate and investment banking for EMEA. John Eydenberg will be vice chairman of CIB for the Americas, and Marc Pandraud will be vice chairman of CIB for EMEA, new roles for the firm. Wall Street Journal (paywall)</p> <p>IMF tells U.S. Fed to wait for inflation numbers. The IMF paper released Thursday says that the Fed should look for firm signs of rising inflation, as well as a stronger labor market before raising interest rates. The report came out in anticipation of of the G20 meeting in Turkey. Reuters</p> <p>Apple in talks with banks to develop P2P mobile system. Move over Venmo and Square. Apple is in talks with major banks including JPMorgan and Wells Fargo to enable iPhone users to pay their buddies through Apple Pay. Wall Street Journal (paywall)</p> <p>Morgan Stanley to offer savings accounts, certificates of deposits. It's not as exciting as deal-making, but the investment bank hopes the broader suite of consumer offerings will lure customers to its wealth management division. Competition is intense in the sector. Reuters</p> <p>Angie's List in unwanted bid. IAC/InterActive has offered $512 million for the Internet site, which provides online reviews of home-related services. It hasn't turned a profit since going public four years ago. IAC owns About.com and Vimeo. New York times (paywall)</p> <p>The feds move to ban smoking in public housing. An announcement should come Thursday from the Department of Housing and Urban Development. The move would affect more than one million people -- who are likely to wonder whether the government can really tell them what to do in their homes. New York Times (paywall)</p> <p>Draghi offers more bouquets. The ECB president said in speech: “If we were to conclude that our medium-term price stability objective is at risk, we would act.” Mario Draghi took to the in Brussels to reiterate his “anything it takes” approach. European Central Bank</p> <p>U.S. arrests cousins of Venezuela president in drug bust. The pair were charged with trying to transport 800 kilograms of cocaine into the country. The
Runaway stories and fairy tale endings: the cautionary tale of Theranos
Capital Markets
I saw the new Steve Jobs movie, with the screenplay by Aaron Sorkin, over the weekend. As a long-time Apple user and investor, I must confess that I was bothered by the way in which the film played fast and loose with the facts, but I also understand that this is a movie. Sorkin clearly saw the benefit of using
Daily Scan: Stocks drop; Fed presidents send mixed signals on interest rates
Capital Markets
<p>Updated throughout the day</p> <p>November 12</p> <p>It's Fed comments day: Federal Reserve Chair Janet Yellen spoke Thursday morning about monetary policy in general, but didn't comment on the outlook for the U.S. economy. New York Fed President William Dudley and St. Louis Fed President James Bullard both seem to be leaning toward a rate hike. Bullard called the near-zero interest rate policy a "considerable risk of future inflation" for the U.S. economy. Chicago Fed President Charles Evans was a bit more hesitant, saying it could be "well into" next year before the inflation goal is reached.</p> <p>Here’s what else you need to know:</p> <p>Markets sink. The bloom is off the October rally, and November is looking a little droopy for equities as investors contemplate a likely interest rate hike in December. The Dow fell more than 1% by midday Thursday. The Nasdaq was down 0.5%, and the S&amp;P 500 dropped 0.87%.</p> <p>Deutsche Bank keeps moving executives. The top officials of the investment bank are shifting, with Goldman Sach's Alasdair Warren appointed as head of corporate and investment banking for EMEA. John Eydenberg will be vice chairman of CIB for the Americas, and Marc Pandraud will be vice chairman of CIB for EMEA, new roles for the firm. Wall Street Journal (paywall)</p> <p>IMF tells U.S. Fed to wait for inflation numbers. The IMF paper released Thursday says that the Fed should look for firm signs of rising inflation, as well as a stronger labor market before raising interest rates. The report came out in anticipation of of the G20 meeting in Turkey. Reuters</p> <p>Apple in talks with banks to develop P2P mobile system. Move over Venmo and Square. Apple is in talks with major banks including JPMorgan and Wells Fargo to enable iPhone users to pay their buddies through Apple Pay. Wall Street Journal (paywall)</p> <p>Morgan Stanley to offer savings accounts, certificates of deposits. It's not as exciting as deal-making, but the investment bank hopes the broader suite of consumer offerings will lure customers to its wealth management division. Competition is intense in the sector. Reuters</p> <p>Angie's List in unwanted bid. IAC/InterActive has offered $512 million for the Internet site, which provides online reviews of home-related services. It hasn't turned a profit since going public four years ago. IAC owns About.com and Vimeo. New York times (paywall)</p> <p>The feds move to ban smoking in public housing. An announcement should come Thursday from the Department of Housing and Urban Development. The move would affect more than one million people -- who are likely to wonder whether the government can really tell them what to do in their homes. New York Times (paywall)</p> <p>The Hang Seng Index soared 2.40% on Morgan Stanley move, its best day since October 7. The investment bank upgraded the MSCI Hong Kong index, saying its heavy weighting in insurance companies means it will do well as the U.S. raises interest rates. The Hang Seng Index is down 9% since August when mainland China devalued the yuan. In a note, Morgan Stanley said its index has a greater exposure to Hong Kong's economy than China's. However, Morgan Stanley did not upgrade its views on its other Asian indices. Barron's Asia</p> <p>Draghi offers more bouquets. The ECB president said in speech: “If we were to conclude that our medium-term price stability objective is at risk, we would act.” Mario Draghi took to the in Brussels to reiterate his “anything it takes” approach. European Central Bank</p> <p>U.K. home prices may climb 22.5% over the next five years. Here’s a bit of news for prospective home buyers. The Royal Institute of Chartered Surveyors forecast British home prices to climb 4.5% per annum over the next five years, largely due to a consistent decrease in supply and a continuous uptick in demand. RICS</p> <p>Japanese machinery orders trump forecasts. In another round of good news for the land of the rising sun, machinery orders in the struggling nation climbed 7.5% in September – its first rise in four months – and handily beat
Daily Scan: Hang Seng soars 2.4%; Draghi hints at more easing
Capital Markets
<p>Updated throughout the day</p> <p>November 12</p> <p>The Shanghai Composite gave back some of its hard-earned gains Thursday, falling 0.48% as traders re-examine valuations and check their outlook on the nation’s economy. Shares in Hong Kong however were a different story. Led by Singles’ Day stalwart Tencent and buoyed by encouraging news from Morgan Stanley, the Hang Seng Index soared 2.40% to 22,888.92, its best day since October 7, while the Hang Seng China Enterprises Index added 1.59%. Here’s how the rest fared:</p> <p> Nikkei 225: +0.03%<br /> Shenzhen Composite: +0.28%<br /> Straits Times Index: -0.72%</p> <p>European shares meanwhile look pretty encouraging. After falling dramatically right out of the gate, the FTSE 100 is currently up 0.04%, while the DAX 30 and CAC 40 are up 0.42% and 0.19% respectively.</p> <p>Here’s what else you need to know:</p> <p>Draghi: “If we were to conclude that our medium-term price stability objective is at risk, we would act.” In case he wasn’t dovish enough during his last speech, ECB President Mario Draghi took to the in Brussels to reiterate his “anything it takes” approach. European Central Bank</p> <p>U.K. home prices may climb 22.5% over the next five years. Here’s a bit of news for prospective home buyers. The Royal Institute of Chartered Surveyors forecast British home prices to climb 4.5% per annum over the next five years, largely due to a consistent decrease in supply and a continuous uptick in demand. RICS</p> <p>Australian jobs report decimates estimates. Economists – who were expecting a 15,000 climb – were left dumbfounded after the Australian Bureau of Statistics reported an astounding 58,600 jobs increase in October. The FT does note that this may have been massaged a bit, but the underlying trend seems to be pretty solid. Australian Bureau of Statistics / Financial Times (paywall)</p> <p>Bank of Korea leaves rates unchanged. As expected, the Bank of Korea’s monetary policy committee kept its base rate unchanged at 1.50%. This is the fifth-straight month the bank stood pat on policy after slashing rates to a record low following the MERS outbreak. Reuters</p> <p>Japanese machinery orders trump forecasts. In another round of good news for the land of the rising sun, machinery orders in the struggling nation climbed 7.5% in September – its first rise in four months – and handily beat forecasts for a 3.3% jump. CNBC</p> <p>Catalonia vows to go independent within 18 months. Despite seeing Spain’s Constitutional Court block her region’s attempted secession process Wednesday, Catalan Vice-President Neus Munte said it was the political will of the regional government to carry on with its plans for independence within 18 months. BBC</p> <p>Alibaba sets a Singles’ Day record. The Chinese internet giant saw its largest online shopping day on Tuesday as its marketplaces hosted $14.3 billion in sales, even though the rate of growth was slower than last year. The Wall Street Journal</p> <p>Myanmar leader congratulates Suu Kyi. The country’s military-backed President Thein Sein congratulated Aung San Suu Kyi’s opposition party on its success in polls so far, with 47% of seat declared. BBC</p> <p>Beijing has a plan to rev up consumption. In a battery of moves meant to accelerate domestic demand, the Chinese government will “encourage businesses to adopt new technology and materials,” rev up its household registration reforms “to drive home sales and boost consumption of home appliances,” and encourage the importation of consumer goods. Xinhua</p> <p>China, Taiwan love is short-lived. Days after the two country’s leaders were seen to shake hands in a historic meeting, top Taiwan officials in have now hit out at “unfair” Chinese competition and Beijing’s moves to isolate the island. Financial Times (paywall)</p> <p>Too big to fail rules may cramp Chinese banks’ style. Under the latest proposal by the Financial Stability Board, three of China’s biggest banks may have to cough up as much as €355 billion altogether just to comply with the new “too big to fail” requirements. Tha
Global earnings update: Europe and Japan coming up short
Capital Markets
<p>KEY TAKEAWAYS<br /> · European earnings have disappointed relative to expectations and may suggest tempering near-term expectations for European stocks.<br /> · While we are encouraged by Japan’s economic progress, its earnings season has also fallen short of expectations.<br /> · We recommend suitable investors focus equity allocations in the U.S., while maintaining modest developed international equity exposure.<br /> Earnings overseas have generally not kept up with the U.S. We spend a lot of time dissecting earnings season in the U.S. because we believe earnings are the single biggest driver of stock prices over the long run. But earnings are not just important for U.S. stocks, they are also important for stocks overseas. This week we provide an earnings update in Europe and Japan, where results thus far have mostly fallen short of those in the U.S. While we continue to focus our equity allocations in the U.S., we still recommend modest developed international equity exposure for suitable investors, despite third quarter 2015 earnings shortfalls overseas. Prospects for international earnings to improve over the rest of 2015 and into 2016, and for additional monetary stimulus, are supportive.</p> <p>The Source:<br /> Earnings figures may vary depending on the source (Thomson, FactSet, Bloomberg, etc.). Data providers have different methodologies for calculating earnings, and different interpretations of what constitutes operating earnings as compared with reported (GAAP) earnings. In general, we favor the Thomson data series’ long history in the U.S., but view FactSet as a reliable source of international earnings data.</p> <p>U.S. EARNINGS SEASON TRACKING ACCORDING TO PLAN<br /> We wrote about third quarter 2015 earnings season in the U.S. in our recent Weekly Market Commentary, “Corporate Beige Book,” where we compared the number of positive words relative to the number of negative words in earnings conference call transcripts to assess the mood of management teams discussing results. Despite the challenging environment, particularly for global companies impacted by the strong U.S. dollar and companies tied to commodities, moods were generally positive. That exercise also highlighted the increased attention on China.<br /> Earnings season in the U.S. is about 90% complete, ahead of Europe (51%) and Japan (73%), so we have a near final picture of where the numbers will end up. Results relative to expectations have been very good, with a 5% upside surprise thus far for S&amp;P 500 earnings; and excluding the energy sector, earnings are on track to grow at a solid 6% pace. Excluding the drag from currency due to the strong U.S. dollar, earnings would be on track for a near 9% year-over-year increase, a very respectable figure for this stage of the economic cycle. U.S. earnings are poised to accelerate during the fourth quarter of 2015 and potentially return to mid- to high-single-digit growth rates within the next several quarters.<br /> EUROPE DISAPPOINTS<br /> In Europe, where the third quarter 2015 reporting season is only about halfway complete, results thus far have been disappointing on a variety of metrics. First, based on MSCI indexes, Europe has suffered the biggest year-over-year decline in earnings and revenue compared with the U.S. and Japan [Figure 1]. The story is no different if the sharp declines in energy sector profits are excluded. Second, the earnings beat rate (percent of companies beating earnings estimates) at 50% is significantly lower than the 70%-plus rate in the U.S. (and in-line with Japan’s rate) [Figure 2]. And third, the earnings surprise, at a 5% shortfall, is far worse than the 5% upside surprise to earnings in the U.S. thus far and worse than the 2% shortfall in Japan [Figure 3]. The only metric in which Europe compares favorably to the U.S. and Japan is the revenue surprise (+2%), which is better than the U.S. result and Japan’s 1% shortfall.</p> <p>These results are discouraging for several reasons. For one, Europe has a currency advantage relative to the U.S. The drag from a str
Jamie Dimon is the best big bank CEO, by shareholder returns
Capital Markets
<p>After almost a decade leading JPMorgan, Jamie Dimon has provided better shareholder returns than any of his competitors.</p> <p>Since Dimon took control at the beginning of 2006 the total shareholder return for the $2.4 trillion JPMorgan has been a total 119.5%, including dividends, reports the Motley Fool. Dimon is also the longest ranking big bank CEO. Dimon's closest competition is Wells Fargo CEO John Stumpf. Wells Fargo has had 97.3% shareholder return since Stumpf became CEO in June 2007.</p> <p>Goldman Sachs reported 47.1% shareholder return since Lloyd Blankfein became CEO in June 2006. Morgan Stanley has 40.6% return since James Gorman's appointment in January 2010. And Bank of America reported 22.1% return since Brian Moynihan became CEO in January 2010.<br /> Photo: Financial Times </p>
Daily Scan: Alibaba hits $14B record for Singles' Day; Macy's plunges 14%
Capital Markets
<p>&nbsp;</p> <p>Updated throughout the day</p> <p>November 11</p> <p>The S&amp;P 500 ended 0.3% lower, largely on weakness in the energy sector where oil futures fell 2.9% on supply fears. Macy's got slammed Wednesday, falling 14% after a big miss on revenues and a weaker outlook going forward. The bond market and banks were closed in honor of Veteran's Day.</p> <p>Here’s what else you need to know:</p> <p>U.S. arrests cousins of Venezuela president in drug bust. The pair were charged with trying to transport 800 kilograms of cocaine into the country. The U.S. has long suspected that high-ranked government officials are involved in dealing drugs. Wall Street Journal (paywall)</p> <p>Apple in talks with banks to develop P2P mobile system. Move over Venmo and Square. Apple is in talks with major banks including JPMorgan and Wells Fargo to enable iPhone users to pay their buddies through Apple Pay. Wall Street Journal (paywall)</p> <p>Alert! Alert! Alert! Facebook's new app Notify has landed and will push as many news notifications as you want from a menu of 70 publishers. It's one of the biggest real estate grabs yet for the lockscreen on your phone. And it only takes 8 seconds to open a story you want to read. Hmmm. The Verge</p> <p>Alibaba hits new record on Singles' Day event with help of Frank Underwood and James Bond. The biggest Internet commerce event in the world raked in more than $14 billion. Actor Kevin Spacey helped promote the sale in a video as President Underwood. Reuters, South China Morning Post (paywall)</p> <p>Republicans show greater unity in substance-based debate. The consensus says Florida Sen. Marco Rubio and Texas Sen. Ted Cruz shone the brightest while the erstwhile frontrunner Jeb Bush wasn't terrible. Donald Trump was polite. The candidates sparred on immigration, security, and the economy and many invoked the legacy of Ronald Reagan. Politico</p> <p>AB Inbev snaps up SABMiller for $105.5 billion. Molson Coors may pay $12 billion for the part of MillerCoors it doesn't own -- paving the way for regulatory approval of the ginormous merger.  After weeks of backs and forths between the two companies, Anheuser-Busch InBev announced on Wednesday that it had formally agreed to purchase SABMiller for a whopping £69.78 billion ($105.5 billion). Cheers, people. Fortune/Wall Street Journal (paywall)</p> <p>New York State attorney general shuts down fantasy sports sites. Eric T. Schneiderman said DraftKings and FanDuel are gambling enterprises, illegal in the Empire State. The move is a major setback for the popular websites, under scrutiny after an employee inadvertently released confidential information and subsequently won $350,000. Last month, Nevada said the pair should be considered gambling sites. New York Times (paywall)<br /> You won’t believe this:<br /> Yaaas! My bestie is always on fleek. Dictionary.com has added more than 150 new words including: Bestie, Digital Citizen, Doge, Facepalm, Feels, Fleek, IRL, Sapiosexual, and Yaaas. Look 'em up! BuzzFeed</p> <p>&nbsp;<br /> Photo: Pete Bellis</p>
Mary Jo White and SEC to look into short sellers
Capital Markets
<p>The Securities and Exchange Commission chairman spoke to Bloomberg Television on Tuesday, revealing her concerns over short sellers.</p> <p>U.S. regulators are considering a move that would mean short sellers have to emerge from behind the veil of secrecy that currently cloaks their work. White expressed her concerns about negative comments from research firms that have increasingly affected share prices of late, in an interview with Bloomberg Televison.<br /> SEC to examine short selling disclosure rules more closely<br /> “It’s a complex sort of landscape, but it is an issue that has our intense attention,” said Mary Jo White during the interview, responding to a question about the potential for new rules governing short-selling disclosures by investors.</p> <p>Although White refused to mention specific companies in her response, one example of the impact of criticism on share prices is drug-maker Mallinckrodt Plc. Shares in the company fell 17% on Monday following criticism on Twitter from Citron Research, a commentary site run by Andrew Left. Renowned short seller Left’s Citron Research also provoked a rout of Valeant Pharmaceuticals International Inc. last month.</p> <p>Under existing rules hedge funds are required to report their long positions on a regular basis, but no rules govern their short positions. In contrast funds working in Europe have had to disclose shorts of over 0.2% of a company’s market value and up to regulators since 2012. Public disclosure is required for shorts that total 0.5%.<br /> Pressure growing for new rules<br /> “Short selling has a legitimate, positive purpose in the marketplace,” White said. “That’s very different, though, than if you manipulate by short selling.”<br /> Left makes his bearish positions public on Citron, and more disclosure might not affect his work. However the use of Twitter is set to come in for more scrutiny from White, who believes that a 140-character Tweet can do the same damage as a four hour presentation.<br /> The New York Stock Exchange has also appealed to the SEC for new rules forcing investors to reveal which stocks they are short selling. A letter dated October 7 asked the SEC to “bring light to a less transparent and increasingly consequential corner of the securities market.”</p> <p>At the same time it is important to recognize that short selling is one of many ways, including derivatives, that investors can bet against a particular stock.</p> <p>This article was originally published by ValueWalk. </p> <p>&nbsp;</p>