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Here's the problem: Truth will always win out, but it won't always win out quickly. At some point, you need to cover your short positions and your put options
by gensym 19y ago
Here's the problem:
Truth will always win out, but it won't always win out quickly. At some point, you need to cover your short positions and your put options will expire, and if truth hasn't won out yet, you can land yourself in a world of financial hurt.
Note that this is just the more problem w/ shorting and put options and why these instruments are typically only used by people w/ access to large amounts of capital - they can afford to wait it out.
- mhartl 19y agoIndeed. As John Maynard Keynes put it, The market can stay irrational longer than you can stay solvent.