Editor's note: This column was originally published March 11.
The current wisdom says that once war with Iraq starts and it becomes apparent the U.S. has things well in hand, stocks are poised to rally sharply, possibly even marking the end of the bear market and the beginning of a new bull. This view has many short-sellers, now in the fourth year of their post-bubble feast, not wanting to overstay their welcome. They're getting nervous and quick to cover. And I believe that after so many months of anticipation, the commencement of military action will bring an initial rally.
But until proven otherwise, we're still in a bear market for stocks. So it seems to make sense to me that rather than fight the tape from the long side, investors should keep an eye out for opportunities to make money from the short side.