BALTIMORE (Stockpickr) -- It's no wonder that financial stocks have been some of the most interesting plays of the last several years. In 2008, as overleveraged firms found it harder to operate, the financial sector fell the hardest at the hands of scorned investors who were caught off guard. And in 2009, when financial stocks finally looked cheap, they rallied hard, rewarding those who were willing to stick it out with what was deemed a risky sector.
One of the financial industries that took the biggest shellackings in 2008 was ratings companies. Investors, angry at the thought of analysts' rubber-stamping dubious financial instruments, have decided to fight back, shorting shares of the group as regulatory changes and decreased business have loomed. Credit ratings firm Moody's ( MCO - Get Report), which sports a short ratio of 13.7, has not been immune.
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