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Pastimes : Learning To Invest Correctly - A Shared Experience

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To: Fredman who wrote (122)7/29/1998 6:00:00 PM
From: Mama Bear  Read Replies (2) of 253
 
Fred, I totally disagree that shorting is like gambling. I agree that one shouldn't touch it without a thorough understanding, but one shouldn't go long without the same understanding. One can gamble going long just as you seem to perceive short selling. A few well selected shorts does wonders for the overall beta of one's portfolio. Not all stocks are in an uptrend, and many companies are destined for the scrap heap of history. I wouldn't dream of having a portfolio without at least 10% worth of the equity for shorting, just like I wouldn't dream of not having foreign holdings or bonds.

Barb
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