SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Global Crossing - GX (formerly GBLX)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: TechMkt who wrote (12704)7/19/2001 7:51:38 PM
From: CF Rebel  Read Replies (1) of 15615
 
OT

What?

"A drop in short interest may indicate some investors anticipate a rally, while a rise may show some investors expect a decline in stocks."

Since when is a short an "investor?" An investor owns a share of a business or asset. A short borrows, without explicit permission from or payment to a non-dividend paying stock's share owner. It's unfortunate that brokerages require a margin account owner to allow others to "borrow" their stock without payment or restrictions. Owners of stock ought to have bargaining power to "lend" their stock out - you want to borrow my stock, pay me for the right. A market with borrowing premiums would be interesting and might ameliorate the unnecessary volatility that shorting creates. A short being responsible for dividends only, if paid, is a joke.

One could say that margining also creates volatility, which it no doubt does. But the marginer does pay interest regardless of performance. It would be interesting to see a study as to what factors were the biggest drivers of the bubble of the past few years. I doubt margining had anywhere near as great an effect as tax-advantaged accounts or the free cash thrown off by baby boomers in their highest earning years. And I do wonder about the investment banker shenanigans and it's effect.

As things stand, shorting is looking pretty easy these days so I'd say we're within a quarter or two of a fundamental turn in the market. The longs bubble will become the shorts crater. From one extreme to another. Everyone gets theirs.

By the way, my shares are always held in a cash account.

CF Rebel
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News