Doug Kass: SPAC Market Is Ripe for Short Sellers

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In the 1990s, a roaring time during the dot.com era, stocks were going up wildly on prospects alone, with no earnings, no revenue, and lots of parties. This was fertile ground for a short seller, but many were taken out in a matter of months because they could not withstand the pressure of constantly being wrong.

In the end, the market fell hard in 2000-2002 and many short sellers were already taken out on a stretcher or came back in late. Is today any different?

Bob Lang, Real Money contributor and co-portfolio manager of Trifecta Stocks, and Real Money Pro Contributor Doug Kass discussed the ins and outs of short selling in today's environment and, of course, we got inside the mind of a short-selling pro.

The conversation shifted to the GameStop ( (GME) - Get Report) stock saga, which was a great lesson for everyone watching the greed/fear in real-time. While the fundamentals of GameStop are/were poor and well documented, Doug ticked off reasons why this stock should not have been shorted (he was not and would not have been even at the moderate levels). It trades like this that can make/break a career, but who needs to take that risk?

Watch the video above for more from Kass and Lang.

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