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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Eddy Blinker who wrote (46686)	4/16/2000 3:16:00 PM
From: Oak Tree	Read Replies (1) \| Respond to of 99985

I personally think short selling could be very dangerous right now. Remember if people with money, including the mutuals, have to invest the money they pulled out Friday, the short sellers could actually help the market recovery when they have to quick cover their short. Just a thought.

To: Eddy Blinker who wrote (46686)	4/16/2000 3:50:00 PM
From: Michael Watkins	Read Replies (2) \| Respond to of 99985

Eddy, I think we are more in agreement than in disagreement. I do however disagree with you when your remarks would include any of the house hold investors in your country. They are busy, working daily to pay the bills or stay in business with success. They have become real victims of a totally corrupt system which favors the short seller.To those house hold investors "it" all came overnight. They have no swords. They work with their hands (holding wooden spoons), no swords. I am not only referring to "daytraders" but most certainly the average and uninformed investor. In fact, my beef is most definitely not wiht professional short sellers but with the HUGE professional investment industry that has built up over the past 5 years, doing nothing but "marketing" to uninformed individual investors which end up "holding the bag". I do some consulting for a securities commission and have some knowledge about the number of mutual fund sales people licensed every year. These people are just sales people, all trained to tell people to hold for the long haul. The fund companies themselves are ever busy inventing new "products" (tech funds, derivative funds to work around certain rules in my country regarding foreign investment, etc) to "sell" to the masses. The fund sales people and brokerage stock pushers point to an index chart on a big scale and of course it always points up. They never tell you that the components of the index always change, that losing companies are dropped off continuously. No, my gripe is a) with the industry and b) with people that do not take the time to learn how to protect themselves. What I've seen in talking to many people over the past year is a complete disregard for the potential risk in investing. Even my mother is completely unconcerned about investing her funds, and she's in retirement, believing things will always snap back. Company and industry insiders make out, the little guy will in the very long run, most of the time, but basically its all a wealth transference system where the inside folks get the biggest piece of the pie. Professional short sellers are not to blame for this... many of them have been crushed on the way up. PS: I've been sounding cautionary notes of alarm to some folks I know that have been investing in more speculative names and they all laughed at me. They aren't traders, they fancy themselves as investors. To a T all the people I warned are now virtually wiped out. I am not kidding.