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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.

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.