tag:blogger.com,1999:blog-2222178257396625999.post8731181305311584626..comments2023-11-02T00:57:47.668-07:00Comments on Research Intensive Investing: Overbought and Over BullishResearch Intensive Investinghttp://www.blogger.com/profile/17574978502928876520noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2222178257396625999.post-35767993999618105622007-05-08T17:09:00.000-07:002007-05-08T17:09:00.000-07:00Ohad,Thanks for the comment. I am still traveling...Ohad,<BR/><BR/>Thanks for the comment. I am still traveling, but will be returning to the US soon (when I do, my posts, both to comments on to the blog itself, should once again be more frequent).<BR/><BR/>I plan to write an article on shorting soon, but I will give you the general overview. Shorting can be very dangerous, if you short the wrong stocks. For example, I do not short fast growth stocks with unlimited growth prospects (this is how people lose their shirts). I usually short overvalued, moderately growing companies who are likely to miss earnings in the near term. I have a specific catalyst in mind, and if it does not materilize I exit the position. Value investors club has some great short ideas on there that may be worth looking into (my favorite, currently, is shorting the REIT index).<BR/><BR/>The main benfits of shorting is that you significantly reduce volatility while simultaneously potentially increasing your absolute returns. <BR/><BR/>I have used puts, at times, but they are a bit more complicated and require more attention than I am able to give them.Research Intensive Investinghttps://www.blogger.com/profile/17574978502928876520noreply@blogger.comtag:blogger.com,1999:blog-2222178257396625999.post-36941856025654943962007-04-29T14:08:00.000-07:002007-04-29T14:08:00.000-07:00Eric,I think you are right about the coming months...Eric,<BR/>I think you are right about the coming months. i don't think equity markets will crash, but a 7%-10% correction sounds pretty reasonable, even healthy.<BR/><BR/>To be honest, I never understood shorting stocks as a strategy. why would you want to expose yourself to unlimited losses and very limited gains? It seems to me that the reasonable step is simply selling part of your holdings or perhaps buying some PUT options.<BR/>could you elaborate about what is the logic behind keeping your stocks combined with shorting some of them.<BR/><BR/>btw,are u still in Asia?Unknownhttps://www.blogger.com/profile/14706183512326131955noreply@blogger.com