Insight: Shorts set to pounce as stocks seen pricey, Fed pulls back

[riky]

Insight: Shorts set to pounce as stocks seen pricey, Fed pulls back

<p><a href="http://news.yahoo.com/insight-shorts-set-pounce-stocks-seen-pricey-fed-060540511--sector.html"><img src="http://l.yimg.com/bt/api/res/1.2/QFGc5Pv5zmVPclcMAnGTgw--/YXBwaWQ9eW5ld3M7Zmk9ZmlsbDtoPTg2O3E9NzU7dz0xMzA-/http://media.zenfs.com/en_us/News/Reuters/2014-01-20T100744Z_1_CBREA0J0GYM00_RTROPTP_2_MARKETS-STOCKS.JPG" width="130" height="86" alt="Traders work on the floor of the New York Stock Exchange" align="left" title="Traders work on the floor of the New York Stock Exchange" border="0" /></a>By Rodrigo Campos and Sam Forgione NEW YORK (Reuters) - After years of hiding under their desks, short sellers are re-emerging - slowly. Investors who make a living betting that stock prices will fall are happy to forget 2013: The S&amp;P 500 gained nearly 30 percent while Credit Suisse's index of hedge funds with a dedicated short bias lost 25 percent. Buying the most heavily shorted stocks was a much better bet than the S&amp;P 500: A list of top shorted stocks from SunGard's Astec Analytics beat the S&amp;P 500 by 26 percentage points on average last year. But with the Federal Reserve beginning to cut back on its bond buying - in a withdrawal of the stimulus that underpinned the rally - there's hope for short sellers in 2014.</p><br clear="all"/>

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