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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jung who wrote (2090)	10/9/1998 6:08:00 PM
From: Tommaso	Respond to of 3339

Not to mention the short sellers who contribute all their wealth to the market by getting wiped out. I have never quite managed to see what the effect of covering shorts against the box might be--I guess essentially the same as buying back uncovered shorts. Or is it? In some ways large outstanding short positions are like credit creation--it's sort of imaginary shares. There probably are a lot of people like me who are holding covered short positions indefinitely in order to protect gains. My experience leads me to think that it's better to sell and pay the taxes rather than do this, even if your holding is 90% taxable.