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Subprime mortgages were in the set of bs fantasy valuations. Their puncture did hurt other people. ...but for the individual who spots a bs fantasy valuation
by conjectures 16y ago
Subprime mortgages were in the set of bs fantasy valuations. Their puncture did hurt other people.
...but for the individual who spots a bs fantasy valuation - logic suggests shorting the stock.
- smokinn 16y agoYou can't short just because you think a stock is over-valued. You can only short when you both think a stock is over-valued and will soon hit a correction. It's that second part that makes shorting dangerous because you can't just call it; you have to call it at the right time.
- brown9-2 16y agoThe same can be said for investing in a long position.
- jdminhbg 16y agoNo, you can hold on to a long position forever; the most you can lose is the amount you invested.
- conjectures 16y agoTrue, and I considered hedging that phrase. Then I reconsidered, as it's pretty much implicit in the notion of shorting.