InvestorsHub Logo
icon url

lizzy241

07/01/20 2:16 PM

#283975 RE: Lemmiwinks #283972

Lem, OT At least when the uptick rule was still enforced it was somewhat a level playing field now it's a free for all. Shorts do serve the purpose of creating supply and demand. But with technology being faster than speed of light it's not worth the risk.
icon url

Meowza

07/01/20 2:32 PM

#283980 RE: Lemmiwinks #283972

Shorts have a place... I don't short, it's problematic for the following reasons:

-it's an asymmetric bet, to the short's disadvantage
-it bets against the success of an enterprise pursuing a profitable benefit to society
-it bets against a discrete community of common stakeholders, with non-zero lobbying power
-on a sufficiently long time scale, a given equity's value tends to increase
-it's a contrarian investment thesis, which only generates value after enough people acknowledge its validity (i.e. enough people change their minds about what's contrarian), always a dicey proposition

...the more the above factors fail to apply, the more possible a short might succeed. Protective puts are about my limit.