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Dec 6th, 2017
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Joined: May 2005
Posts: 47,430 Likes: 373
Member CHB-OG
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Member CHB-OG
Joined: May 2005
Posts: 47,430 Likes: 373 |
I have never sold short again, nor will I. What does 'sold short' mean?
Contrarian, extraordinaire
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Joined: Jun 2007
Posts: 4,245 Likes: 33
old hand
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old hand
Joined: Jun 2007
Posts: 4,245 Likes: 33 |
You sell shares you don’t own immediately by ‘borrowing” them from a broker and selling them—hoping you can buy them back at a future date at a lower price than you sold them. The difference in the repurchase price is the profit you make---or the loss you suffer if the stock goes up. As those tech stock kept going up for another year-to my absolute astonishment—I sold them for a loss, shaking my head all the way.
Then they popped in March 2000. Timing is everything. I saw it coming but what good did it do me?
Last edited by Ken Hill; 09/30/08 02:42 PM.
Get your facts first, then you can distort them as you please.
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Joined: Dec 2007
Posts: 371
newbie
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newbie
Joined: Dec 2007
Posts: 371 |
There is no such thing as a "safe investment", unless you can hold it in your hands or stand on it and even then, it is only worth as much as someone is willing to pay for it. Those who think they can protect themselves while still invested in any way in this system, need to think it through considering the worse case scenario, which is looking more and more possible. http://www.inteldaily.com/?c=172&a=8319Michael Ruppert: What Yesterday's 777 Point Market Drop Really Means (Michael C. Ruppert) -- For years I have told you exactly what was going to happen and it has. Today's economic meltdown, with the Dow dropping 777 points and $1.2 trillion in equity lost is no exception. In our second FTW Economic Alert back in 2002 I predicted a market crash that saw $1 trillion in shareholder equity lost in the following three months. -- $1.2 trillion was destroyed just today. That and much more. In FTW's fourth and last Economic Alert( http://www.fromthewilderness.com/free/ww3/061406_abyss_awaits.shtml)-- just 11 days before our offices were burglarized on June 25, 2006-- I specifically warned that this day (metaphorically speaking) would come. What prompted that alert was an unprecedented move by President George W. Bush to give the National Director of Intelligence, John Negroponte, the authority to exempt "certain" Wall Street firms and banking giants from reporting their financial records to the Securities and Exchange Commission. It was this move which permitted everything that has happened over the last month. That move allowed smaller banks and investors to continue buying pigs (without lipstick) in a poke while average Americans were led to believe that everything was OK. If you don't believe me, go read the Economic Alert for yourself. It's all right there -- everything. And if you had followed every piece of advice I gave in that warning-- two years ago -- today's events would have made you money. They would have strengthened your family. They would have made you immune to the panic that today touched American public consciousness. Gold is likely to explode in price in short order. $2,000 an ounce is possible within six months.
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Joined: Jun 2007
Posts: 4,245 Likes: 33
old hand
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old hand
Joined: Jun 2007
Posts: 4,245 Likes: 33 |
Gold is likely to explode in price in short order. $2,000 an ounce is possible within six months. I still cannot get my mind around gold, even though it is the preferred investment in uncertain times. Why is it worth anything? Because it is shiny, finite, and doesn’t tarnish? It’s a good electrical conductor so I see some industrial applications for it—but I just don’t get it. But just because I don’t get it does not mean I am right. I learned that a long time ago.
Get your facts first, then you can distort them as you please.
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Joined: Jul 2008
Posts: 1,026
member
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member
Joined: Jul 2008
Posts: 1,026 |
There is no such thing as a "safe investment", unless you can hold it in your hands or stand on it and even then, it is only worth as much as someone is willing to pay for it.
Those who think they can protect themselves while still invested in any way in this system, need to think it through considering the worse case scenario, which is looking more and more possible. There are safe investments as long as you believe that the government is going to be around for a while. You can buy 7-21 days treasure bills. The return is very small, but it's as safe as it gets... unless you think the government is gonna go away in the next 7-21 days. But those are not available to the regular folk since you need quite a large capital to partake in that market. Still, you can get fully insured CDs that, depending on the bank, can give you a return of 3.5 to 4% return if you do not withdraw your money early. As I said earlier in other posts, the global economy has at it's foundation one thing: the faith in the US government and the belief that it will be there forever. Every rational person knows that no government and no country lasts forever... but without that belief there would be no world economy. As of right now, people do not have the same faith that the European Union will be together for the long run. That is why there has not been a huge shift to Euro denominated government securities yet. Who knows what will happen in the future.
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
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Joined: Jul 2008
Posts: 1,026
member
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member
Joined: Jul 2008
Posts: 1,026 |
Gold is likely to explode in price in short order. $2,000 an ounce is possible within six months. I still cannot get my mind around gold, even though it is the preferred investment in uncertain times. Why is it worth anything? Because it is shiny, finite, and doesn’t tarnish? It’s a good electrical conductor so I see some industrial applications for it—but I just don’t get it. But just because I don’t get it does not mean I am right. I learned that a long time ago. Because when you own gold, you own a tangible asset that will have some value in the future. Gold has gone up in the past only to crash once the economy picked up again. It has not been an easy ride for gold although in the past 4 years it has gone up quite a bit. http://goldprice.org/30-year-gold-price-history.htmlBut if you take inflation out of the equation, the price of gold today is not even a third of the price it was in the early 80s http://goldprice.org/inflation-adjusted-gold-price.html
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
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Joined: Jun 2007
Posts: 4,245 Likes: 33
old hand
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old hand
Joined: Jun 2007
Posts: 4,245 Likes: 33 |
Well, I own 1.5 acres of prime farmland 10 miles north of where I live. My son lives on it. I can always grow beautiful crops and have a cow or two to milk if this whole thing caves in. Land makes more sense to me than gold, especially prime, river bottom farmland 20 feet deep. Time to break out the old pick and shovel (and what—a 50 caliber machine gun to keep the starving masses at bay?)
Just kidding folks, I am actually a gentle guy. But as others have said, the system is based on faith—talk about nebulous.
Get your facts first, then you can distort them as you please.
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Joined: Jul 2008
Posts: 1,026
member
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Joined: Jul 2008
Posts: 1,026 |
I have never sold short again, nor will I. What does 'sold short' mean? Rick, there are 2 types of short selling: 1) short selling shared in which you already have an interest in. For example: you have in your portfolio a stock for for some reason or another you cannot sell it. You take an opposite position by short selling in order to hedge your risk. 2) naked short selling in which you have no interest in the said stock by you short sell it anyway. This is for speculative reasons and there is quite a bit of money to be made if you do it right since you can leverage your money quite a bit. Back when I was doing a little trading in college, there used to be a rule that you can only cover your position when you short sell on an "up-tick" in the price... That was a rule implemented to avoid abuse but it has since been taken out of the rule books. However, be careful when you short sell... if you bet wrong and you get that margin call... you'll get screwed big time.
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
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Joined: Jul 2008
Posts: 1,026
member
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member
Joined: Jul 2008
Posts: 1,026 |
I'm coming late to the party - very late - and seems that I am benefiting from other people's mistakes: ie. the home I'm buying was built in 2005 and sold for $390k originally - I picked it up for $195k. I hope you plan to staying in that house for at least 3-5 years otherwise look to take a loss on that home. Home prices will continue to go down well into next year.
A gem cannot be polished without friction, nor a man perfected without trials. ~Chinese Proverb
The early bird gets the worm, but the second mouse gets the cheese. ~Jon Hammond
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Joined: Jun 2004
Posts: 21,134
Administrator Bionic Scribe
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Administrator Bionic Scribe
Joined: Jun 2004
Posts: 21,134 |
So now that the DJ is back up nearly 500 points, can we just pass on the bailout and stop this insane rush to cover the gambling habits of Americans of means?
Life is a banquet -- and most poor suckers are starving to death -- Auntie Mame
You are born naked and everything else is drag - RuPaul
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