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Politics : Ask Michael Burke

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To: Fred B. who wrote (57500)	4/26/1999 7:02:00 PM
From: Mama Bear	Read Replies (3) of 132070

Fred, I just wanted you to know that stocks go down, even in a mania. It's really silly to conclude that because the indices are up that one who is inclined to short or buy puts has lost money. I am actually inclined to believe that shorting is easier in this mania, because the rabid bulls push things up that don't deserve to rise. My best position last year was a short of CFON. The insanity pushed the price up to 15 1/2, which is at least 3 times any credible price for the company. I shorted it all the way up. For some reason I don't think that situation would have happened in a non mania market. Perhaps someday I will be fortunate enough to find out. You also seem to ignore the truism that higher prices increase, rather than decrease risk. You seem to believe that because prices are up, that the bear thesis have been proven incorrect. I do not believe this to be true. Like CFON, there will come a time when folks realize just how ridiculous this whole thing is. When that inevitable event occurs, it will be the folks who have no clue how to successfully play the short side that will have the deepest regrets. Barb

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