Biz Direct MarketKnowing When To Make A Good Decision

Long or short? A flight to “safety” so “rational” investors BUY government bonds and the yen? Congratulations to “emerging market” South Africa for holding a successful soccer tournament and for winning the stock market World Cup over the long term, 110.5 years. We are all long term investors, right? I guess index zealots are loading up on EZA since past is prologue or is “passive” home bias still wrecking their portfolios? Long or short alternative strategies, not long only traditional assets, is the way to go.

France are out of the World Cup and it’s Warren Buffett’s fault? He shorted Les Bleus to profit from their demise. Negative bets “cause” failure according to those who blame short sellers. Do things fail because of fundamental problems or shorts? Have sovereign debt spreads widened due to some belatedly realizing there are no risk free bonds or use of credit derivatives? Anyone not shorting is not hedging. The fact is that markets where short selling and derivatives are not allowed have WORSE crises.

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