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To: LLCF who wrote (75947)3/6/2001 12:44:13 PM
From: HEP_Ronin  Read Replies (1) of 436258
 
LLCF Where do you keep your cash from the shorts in your portfolio? Any suggestions?
I also have some overvalued techs short, and am going to wait out the P/E contractions as more warn, and growth prospects get pushed further into the future.

The thing is... with the Japanese lowering interest rates, and the Fed doing the same I don't want to be holding cash as they inflate it. (kind of like a corp issuing more shares)
But if you're short some securities then you're going to have some cash from the short sales.

Lets say for instance the cash was in a bond or some sort of bond fund. Then, in principle, when Greenspan lowers rates .5% shouldn't the bond instantly appreciate by the same percent, as new bonds would pay a lower rate? Or are bond going to try to track "inflation?" This is an oversimplification, of course. I'm thinking of unwinding the short positions over something like 6 months.

The Bull Market was nice, wasn't it.<g>
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