While I agree with you, the problem is that shorting does have its own risks.
The saying goes: The market will stay irrational, longer than you can stay solvent.
So while your thesis is correct, it may be too soon. So you’d be wrong. You can also get caught up in a short squeeze, in which case you will be carrying heavy losses. Or if you buy a Put, then the derivative may expire worthless.
There are just too many insider trading manipulations that can happen behind the scenes, that you as a random investor are not privy to.
But, if you are lucky, and if you timed it correctly, then shorting a stock can net you a significant amount of money.
The saying goes: The market will stay irrational, longer than you can stay solvent.
So while your thesis is correct, it may be too soon. So you’d be wrong. You can also get caught up in a short squeeze, in which case you will be carrying heavy losses. Or if you buy a Put, then the derivative may expire worthless.
There are just too many insider trading manipulations that can happen behind the scenes, that you as a random investor are not privy to.
But, if you are lucky, and if you timed it correctly, then shorting a stock can net you a significant amount of money.