by Kris Sayce on November 27, 2008
The short selling debate just won’t go away. It has almost reached hysterical proportions. The recent ban on short selling and massive fall in the stock market should have proved once and for all that short selling does not cause stock markets to fall.
The investment director of 452 Capital, Peter Morgan has had a letter published in today’s Australian Financial Review. He makes to main points.
The first is his disbelief that fund managers would lend out stock to investors who they know will use it to short sell. He particularly has a beef with superannuation funds that do this.
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by Kris Sayce on November 21, 2008
We aren’t sure what to make of the ASX’s new Short Sell Report. After seeing just two days of statistics there isn’t much to go on.
But our first reaction was this. There isn’t much that is short. Of course short selling has only been made available again after a two month ban, so many that were short prior to the ban have probably closed out their positions.
For all the fuss about how short sellers were driving down the market these statistics - at first glance - put a damp squib on that argument.
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