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Strategies & Market Trends : Z Best Place to Talk Stocks

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To: BWAC who wrote (43298)8/31/2002 8:58:24 PM
From: Ira Player  Read Replies (1) of 53068
 
The short side of the market plays a very important role in helping avoid "excessive exuberance", sometimes taking a bath while trying to do so...

I believe balance is required in any game.

If you are of the belief that someone who has the skills to identify a company that is oversold and represents a solid value play should profit from this skill, you should also believe that someone that identifies a company that has reached valuations that are not supported by the facts should also profit. How if not selling before the fall.

Manipulation or the use of tricks to impact the price of a stock is equally unfair, whether the profit is derived from driving the price up or down. Driving it down harms current holders, driving it up harms future buyers.

Shorting is not evil. It is a relief valve for an overheated stock. just as value investors are support for one that has fallen excessively.

As for the fact that "they" are borrowing your stock, what do you think is happening to "your" money in your bank account? It's not just sitting in a vault somewhere. For all you know, it may have been loaned to someone that has a business plan that will result in lowered interest rates. Against the best interests of your interest bearing savings that he uses to execute it. <g>

Ira
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