Why Short Stocks Now?

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Oct. 21 (Bloomberg) -- Fleckenstein Capital President and Founder Bill Fleckenstein discusses the reasons to short stocks with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Of flash crash is -- this bull market has over, lots of confrontation.

I am not looking to short them right now.

Trying to get in position to do it when i think the time has come.

You can only make money on the short side when this bed is not spewing liquidity at the market.

In the close of 2009 i said i did not want to be -- it turned out to be good timing.

The fed is never going to stop qe.

The bond market will stop them in my opinion.

I think everyone thought the 10- year in long-term rates rose in the past six months because of taper.

My believe is the bond market is in the early stages of misbehaving.

In other words, it will not do the fed hitting as the bond market has done before.

-- fed's bidding as the bond market has done before.

I am saying we are in the very early stages of this.

The fact that i think it is starting to occur is why i want to get ready to do this.

You mean sometime next year?

You have to put the documents together, raise the money.

14 a decent chance it will occur.

You ask me where the bond market is in a month, and i will have a much bigger -- much better idea.

I think it is hard to say how this discussion will you bald.

Let's say two months from now and we are asked closer to the recent highs.

People will say what is wrong with the bond market?

Would you really want to lend me money for 10 years at three percent?

No, i would not.

The fed is losing control of the bond market.

Mario draghi and ecb will lose control ultimately in europe and on and on.

Japan shooting for two percent inflation.

They have come back under control a little bit.

Ironically the ecb is probably the least maniacal about money printing of all of these guys but in the end will affect everybody.

Sure will.

All of the spreads will start to widen.

Fascinating discussion.

Last we have you here for the whole show.

Sure we do.

This text has been automatically generated. It may not be 100% accurate.


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