Short Sellers are people too

Sentiment towards short sellers in market is equally applicable to people who are negative on property markets, even more so i expect due to long term nature of property!

Think about this next time you read a sensible comment regarding falling prices in Sydney

Mr Finemore said it was odd that most people "believe that it's virtuous by definition to be optimistic and that having a negative opinion is by definition wrongful".

"I believe it's virtuous to be right, that is, it is right to correctly assess the valuation of a business and asset and then rely on rigorous analysis and logical thinking to make decisions.


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Well not everyone can be tall.

 

because most people don't know how to short and make money and they have no control over their asset price when the shorter attack, so the only thing left, is to brand these shorters criminals and all the nonsense

 

Yes but unfortunately people have no Idea how markets work.

Bulls are always happy to take the short sellers money on the way up but when the market turns its not fair to lose it to the Bears. Remember the mantra "Markets only Rise"

Shorting is too complicated for most investors and an anathema for property investors as property is always a one way bet.

Bear markets usually run harder and faster and therefore offer greater opportunity for Riches than most people would understand. But again you need the skill to take advantage of those opportunities and most investors are lazy buy and hold types.

I guess i shouldn't complain.....I have to take some ones money

 

Yep but the takeaway for this site is the notion that always being confident in markets is somehow more 'virtuous' than being sceptical.

 

That is the usual Bulls mentality.

And to be perfectly honest that has worked for them the last 40 years.

But.....Yes there is a "But"

What 99% don't understand is what took place over the last 40 years that was different from all other periods of monetary policy. Markets have been Backstopped or Saved if you like by the current monetary policy ideologues in power at Central Banks around the world with record low rates and stimulus every time the market was threatened.

When the GFC rolled around the imbalances we're so great that extra ordinary monetary policies that had never been tried before were rolled out to once again save the system from correcting its all to normal imbalances. Therefore creating further risk taking and higher Asset values in the mistaken belief we had reached a new paradigm in Economics.

They won't be able to save it next time around.

 

I'm peein in me pants.

 

People have been trying to short the US indicies for the last 4 years - I've had people coming to me in disbelief that they've lost (big) money on their put options.

Like anything, you need more than just an opinion to make money, and you need risk management even when it 'seems' like you can't fail.

I would have no hesitation shorting anything given the right opportunity. To compare to property, it's like being a buy and hold investor vs a developer - both are good, but one knows more and has a few more clever things in their investment tool-box.

 

Exactly......All the while the Market is making higher bottoms and higher Tops.

Most simply have no way of qualifying or quantifying the trend.