JQP:
Two quick points on your post:
1)Hedge funds are not, in general, shorting naked, but rather shorting to cover, to protect other positions. They're just managing their positions. There may be some quick rallies (we saw a mini rally yesterday, lasted about 30 minutes)--if that's fun to watch, you better stay glued to CNBC and your monitor.
2) I don't see any gloating, just statements of position. JimP thinks it's not only safe but the prudent thing to do to buy in this market. I'm glad to be in cash and short some builders and some e&p's. Dabum is, apparently, on the sidelines.
As I noted before, there's nothing patriotic about taking the other side of a trade and owning a position you believe will go lower. And, if you believe the stock in question will go lower, and are willing to take the risks of a short position, then the prudent thing to do is to short the shares and provide liquidity to the market.
A multiyear bear market? Jeez, I'm just trying to get through September.
Kb |
