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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (31637)	4/21/1999 10:24:00 AM
From: J.Y. Wang	Read Replies (2) \| Respond to of 122087

Actually, these past few years have been anomalies in that the large caps have been increasing faster than small caps. There are many reasons why this is occuring, but we'll leave that for another discussion. The fact of the matter is that in this century, stocks have been increasing about 10% a year -- small caps have been increasing at more than that. If you randomly picked 10 stocks to short and held it for a year, the chances are you would be down; If you randomly picked 10 stocks to long and held it for a year, the chances are you would be up. The point isn't that you can't make money shorting stocks. The point is that you have to be more picky shorting stocks than you do longing stocks because of the above facts.