Why the Bears Might Be Right About RH Stock

One of the most dangerous things a beginning investor can do is sell a stock short -- especially when it appears to be popular among others. Not only are your gains capped and losses open-ended, but the presence of so many others doing the same thing makes a short squeeze a very real possibility.

That's the caveat emptor for this article. While I think there's good reason to believe that the bears are right about the fate of RH (NYSE: RH) -- formerly known as Restoration Hardware -- I am not suggesting that the average reader go out and short the stock.

Image source: Getty Images.

Source: Fool.com