It wouldn’t be gambling if you’re certain in your prediction right? Same with when you go long. Why not making money both ways? The short profits could pay for your longs.
It wouldn’t be gambling if you’re certain in your prediction right? Same with when you go long. Why not making money both ways? The short profits could pay for your longs.
I follow the old saying Markets can stay irrational longer than you can stay solvent. I choose to stay solvent and wait for a good entry. Warren Buffet even stated that the stock market is a device for transferring money from the impatient to the patient. These irrational markets with “rip your face off rallies” will liquidate shorts in a heartbeat and you never really know when one of those will happen.Originally Posted by idbefishing
It wouldn’t be gambling if you’re certain in your prediction right? Same with when you go long. Why not making money both ways? The short profits could pay for your longs.
Especially after it has dropped so much. The problem with shorting is the upside gains are limited to the stock hitting zero but the losses if it rises are theoretically infinite. It is like selling a naked call. You never know what the price will be if you have to cover.
Putting money into the market was never intended to be the same as going to a casino.
But if your up against algorithms, isn’t it close?
And yet for many investors that is exactly what it is. Many investors cannot even look at a stock or business and determine if it is fairly valued. Then look at the crypto morons.
FIFY, you're welcome. :-)
I love the computer generated crashes. They provide great buying opportunities because they have no regards to fundamentals. They trade short term and can result in placing good stocks well below where they should be trading. The algos are purely short term but can give a long term investor a great opportunity to buy into a market. People get too obsessed with returns over a year or two. It is pretty much irrelevant unless you are having to cash in stocks to meet your retirement expenses (which is not much of a plan in my opinion).
I retired in 2005 and have not sold any stock to supplement our retirement needs. I am a long term investor, plus I don’t have the skills that some of you do. I guess that I am old fashioned and just let it ride over the years. I have a couple that are down close to 30% now, but I’ll just wait for them to come back and then hopefully continue on a upward path.
My comment was not directed at you and it may have come off wrong. I was just pointing out that many people over the last few years were looking at their account balances when they were up alot and feeling the wealth effect not thinking about how if it declines it puts them in a worse position in terms of retirement. I like the total return concept of income and growth. When one is doing poorly the other should compensate.
We ride thru the storms. However, it's been a little queasy for awhile.
Be nice to see returns again. Even bonds are beating us up currently.
Preferred Stocks are beating us up right now, but they have a nice yield. I never knew that rising interest rates had a negative effect on them like this. On the upside, CD rates are killing it.
Our "yields" are in real estate, now the trick will be to divest commercial property.
There doesn't seem to be a safe spot currently. And we won't change ponies over it.
Good news, it can't last much longer. Maybe 2-3 years, if it's not controlled soon.
This talk really points to how distorted these markets have been since 2008 when the Fed stepped in to bail out the banks, forced quantitative easing and forcing interest rates to near zero for over a decade destroying savers and rewarding reckless speculation. See they never really allowed the market to flush out all this excess when it had a chance. These markets have been addicted to easy cheap money and now hangs on every word the fed says. The easy money party is over and the hangover is going to be brutal. Where is fair market value? No one really knows this since the bottom in 2008 when these markets where artificially propped up by the Fed.
Yep, yep & yep. The last four decades have featured the greatest amount of wealth transfer in history.
Of course, the working class will be saddled with the obligation to fix it. Unless starvation is an option.
It seems like it has been this way since the dot.com bust. The market crashes, they come in with easy policy then create a bubble in the housing market, they deflate the housing bubble then hold rates too low for too long, then create another bubble in equities, bonds, real estate, now they will deflate it once again, and then we will go right back to easy money again. Hopefully they will keep the fed rate at least 2-3% this time once they ease.
The middle to lower class are always the ones destroyed in this environment. They are the least invested in the market during the bull run, most affected by higher inflation and the first ones to lose their jobs during a recession. Kind of like being stuck in a vice and slowly getting the handle turned until the end.
Was thinking a bit more erotically, but your analogy will do in a PG setting.
Advanced Share Dilution 4013, Instructor E. Musk. Good Grief.
Musk can’t unload his shares fast enough on his cult followers!
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