When a stock has high short interest, investors assume the bears must know something they don’t and proceed with caution. But high short interest alone doesn’t always reflect a problem. In fact, some of the most intriguing opportunities can come from stocks that are heavily bet against—especially when there’s a macro catalyst that could flip the script.
And today, that catalyst could be interest rate cuts. Why? Lower rates can ease funding, support valuations, and jumpstart demand across sectors. The Federal Reserve (the Fed) has already delivered its first rate cut, and more are possible by the end of the year.
