Yesterday I posted a long defence of critical journalism, explaining why it is something that investors should welcome (though they rarely do). Today I move onto shorting which, I note, is one again something that some people want banned. They are wrong and this is why.
I accept that those who short are not providing what one might term a “useful” function in society. They are not creating jobs. Instinctively one might think of them as parasites. Their motive is pure greed. However shorting is risky. The most you can lose going long is 100% while your gains are in theory much greater. With shorting the reverse is true. And so it takes an odd sort of individual to sate his greed via shorting.
Having said all of that
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