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Generally speaking, you don't initiate a short position with longer than a two- to three-year time horizon. The cost of borrowing the shares, plus the opportuni
by pdog 6y ago
Generally speaking, you don't initiate a short position with longer than a two- to three-year time horizon. The cost of borrowing the shares, plus the opportunity cost of holding cash for margin maintenance requirements, is too prohibitive.
- xkjkls 6y agoThis is only in the current low interest rate environment. Back in the day you kids probably don't remember, where interest rates weren't 0, you could make some serious returns from the cash you got from selling the shares short.