It’s all so predictably BORING:
The sharp fluctuations in our share and commodity markets have become a major force in holding back world recovery.
And those fluctuations are fanned by the practices of institutions lending scrip to enable shorters to smash the sharemarket. Where you have a market that has been severely sold down by shorters, then relatively minor events can create an avalanche of buying as the shorters cover.
These wild fluctuations hit business confidence and make it very hard for companies trying to raise equity capital and to plan longer term.
It’s vital for Australia and for confidence in our superannuation system that the government pass legislation that forces disclosure to superannuation fund members when their scrip has been loaned to shorters. Members will not be pleased that their holdings have been used in a way to reduce the value of their units, albeit for a fee. Those mangers that conduct such practices will, hopefully, see a mass exodus of funds.
It’s not the bubble it’s the pin. It’s not the idiots who over-inflated everything, it’s the one’s smart enough to know that they did it. You can’t make money in falling markets, only rising ones.
If you can’t make money going up and down then you simply should not be an investor, Gotti. End of story.
