Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (48339)	12/29/2005 11:04:46 AM
From: Tommaso	Respond to of 110194

>>>i do believe there is a fundamental difference between going short and going long<< Kind of hard to argue with that. Maybe the real reason I am not short individual stocks now is that I do have a huge position in RYVNX, which is leveraged to go 200% in the opposite direction of the ^NDX. I cannot get a margin call on this, and also it's a way to short the market inside an IRA. Except for energy, gold, and other commodities, almost everything is still overpriced. About the only long I have outside those categories is GH.UN (Toronto), Gamehost, a casino/hotel/restaurant income trust with a monopoly position in the Alberta tar sands area (Fort McMurray). I meant the P/E ratios for the indices, not individual stocks. Any stock goes to an infinitely high P/E as soon as the company starts losing money. I guess the thing to do is to try to recognize a fortuitous condition when it exists. Like the only casino in a boomtown full of rich roustabouts.

To: Wyätt Gwyön who wrote (48339)	12/29/2005 11:05:50 AM
From: redfish	Respond to of 110194

"with shorting, you might be right in the long run but go bankrupt or be blown out by the margin clerk in the short run. so, in that sense, i think it is gambling" Seems to me that is a case of really lousy portfolio management rather than a problem intrinsic to shorting. If you buy a speculative stock using full margin and get a call does that mean buying stocks is gambling? No it means you made a really poor decision.