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> killing just going long/short on index funds Going short is always a bad idea. The market can stay irrational longer than you can stay solvent. In other word
by huijzer 4y ago
> killing just going long/short on index funds
Going short is always a bad idea. The market can stay irrational longer than you can stay solvent. In other words, you can win at most 100% while you can lose more than 100%, so why make such a bet.
- snapcaster 4y agoIt's not true that you can make at most 100% once you take into account leverage. But I agree with your general point that shorting is much harder than longing
- foobarian 4y agoIf you knew your spouse is going to announce an interest rate hike the next morning, shorting might be a relatively safe bet. And it's not like an index fund will move more than a few points at a time anyway.