Thursday, December 09, 2004


Martha Martha Martha!!!

Well, clearly my ability to pick shorts leaves much to be desired. First I get burned, badly burned, trying to short Google, and now Martha Stewart decides to do a beeline to the stratosphere just as soon as I short her company's shares. I think shorting is one of the most noble pursuits that any investor can undertake. Elliot Spitzer can try to crack down on corporate fraud all he wants; Alan Greenspan can talk about irrational exuberance all he wants. But only short selling provides the ability and the incentive for investors to profit from overvalued stocks. In so doing, short sellers help to ensure that stock prices do not get too out of line with fundamentals, which helps ensure that capital in our economy flows to firms that will use it most productively.

Nevertheless, I don't have a knack for it. If anything, I seem to have an uncanny ability to short stocks that are about to soar. Talk about your contrarian indicator. Well, as you may have figured from this rant, my portfolio sank another 2 grand today ($1,876 to be exact) when again, the market went up. I'm not impressed.

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