Short sellers are more bearish than they’ve been in a long time

Short sellers see major trouble ahead for the U.S. economy and the stock market. We ignore that at our peril.

You might dismiss the short sellers’ bearishness because—by definition—they bet on lower prices and therefore are predisposed to seeing the glass as half empty. Actually, however, short sellers’ collective bearishness fluctuates widely over time. And right now they are more bearish than they’ve been in a long time.

You…