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 : Hedge Funds -- Ignore unavailable to you. Want to Upgrade?

To: Dynamite who wrote (9)	9/11/1998 1:45:00 PM
From: WhipsawMcGraw	Read Replies (1) \| Respond to of 120

Good point but hedging the market has always been an aggressive safety strategy. A hedge fund may be short the airlines and long the oils in anticipation of prices going up. Usually they take several positions in stocks in the industry. They are not stock busters and looking to destroy companies. All it does is let them take a position and if it does not go the funds way, it gives them a hedge.

To: Dynamite who wrote (9)	9/11/1998 3:01:00 PM
From: Marty Rubin	Read Replies (1) \| Respond to of 120

Subject: "Experimental Price Bubble" Question # "4. Does the opportunity to short sell diminish the amplitude and duration of the speculative price bubbles observed in laboratory stock markets? The hypothesis that bubbles are moderated if trades can sell short rests on the argument that those traders who expect the bubble to burst can leverage their sales by taking a short position. Consequently, a small number of traders who have counter-cyclical expectations would be able to offset the ebullient expectations of others. The data fail to support this hypothesis. The duration and amplitude of bubbles remain about the same, but the volume of trading rises significantly above those of experiments in which short selling is not allowed" (Page 208). "Business Cycles and Depressions --An Encyclopedia," Ed. by David Glasner (Federal Trade Commission) Garland Publishing Co. New York & London 1997 ISBN 0-8240-0944-4 amazon.com #reply-5683571