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Short Selling

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Social media’s impact is changing markets

Social media, app and trading platforms that drive retail participation also open doors for greater volatility. Ironically, easy money is contributing to market risks, with shorting hit by spiking to the upside.

Reddit v hedge: GameStop rides to the moon and back

Members of the Reddit army who believed they were inside the tent sharing views with fellow rebels cannot know who is on the other side of their trades - or even who they are talking to in their group.

Unisuper's Pearce suspends stock lending to help stabilise markets

John Pearce's Unisuper funds were among the top performers over most time periods to end 2019. He reveals he has suspended stock lending due to coronavirus and issued a video update to his members.

Shorting deserves more respect

A fund manager that can short sell stocks with weak investment characteristics while reinvesting the proceeds in long positions in preferred stocks has a high degree of flexibility.

Short selling is harder than you think

The rapid price fall of Blue Sky following a poor report from a foreign seller makes it look as if short selling is easy, but there are many risks and details to consider along the way.

Ignore the rise of short selling at your peril

Shorting has implications not only for those looking to sell to profit from price falls. It can create both opportunities and challenges and all investors should watch the short volume.

Shrinking shorts not shrinking opportunities

Although the amount of shorting on the ASX has fallen, there are many opportunities among the different types of shorts to enhance performance while managing the risks.

Make alternatives mainstream and don’t be sold short

Disruption across many industries often makes it easier to pick the losers than the winners. Short-selling can play an important and legitimate role in an investment portfolio, although it continues to attract criticism.

Market winners outperform losers again

In this update of the 'winners versus losers' investment hypothesis, momentum is the winner - again. It's only a 'paper' portfolio but it suggests consistent behavioural biases among investors.

’Short selling’ and the Australian banks

Hedge funds have been short selling Australian banks for a while now, mainly due to perceptions about the property market. However, it is not house prices but unemployment that matters most for bank prosperity.

The long and the short of investing

At a time when technology and society are forcing fundamental change on businesses, there is logic in adding 'shorting' to portfolio management. But it's not simply the opposite of going 'long'.

Stock market winners versus losers

In 1993, researchers in the US studied the phenomenon of winning stocks continuing to outperform losing stocks. Using both long and short positions one could theoretically outperform the market on a regular basis.

Most viewed in recent weeks

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

Australian stocks will crush housing over the next decade, one year on

Last year, I wrote an article suggesting returns from ASX stocks would trample those from housing over the next decade. One year later, this is an update on how that forecast is going and what's changed since.

Avoiding wealth transfer pitfalls

Australia is in the early throes of an intergenerational wealth transfer worth an estimated $3.5 trillion. Here's a case study highlighting some of the challenges with transferring wealth between generations.

Taxpayers betrayed by Future Fund debacle

The Future Fund's original purpose was to meet the unfunded liabilities of Commonwealth defined benefit schemes. These liabilities have ballooned to an estimated $290 billion and taxpayers continue to be treated like fools.

Australia’s shameful super gap

ASFA provides a key guide for how much you will need to live on in retirement. Unfortunately it has many deficiencies, and the averages don't tell the full story of the growing gender superannuation gap.

Looking beyond banks for dividend income

The Big Four banks have had an extraordinary run and it’s left income investors with a conundrum: to stick with them even though they now offer relatively low dividend yields and limited growth prospects or to look elsewhere.

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