Profitably Shorting Stocks Is 'A Myth' (w/ Ken Grant) | Expert View | Real Vision™

Описание: Ken Grant, founder of General Risk Advisors, is one of the most foremost experts on volatility and hedge fund risk management. In his debut appearance on Real Vision, he discusses how the texture of market volatility has changed over the years, and provides his predictions on how the next few months are likely to unfold. He also provides some highly salient advice for those who happen to be bearish on equities right now. Filmed on November 27, 2018 in New York.
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Profitably Shorting Stocks Is 'A Myth' (w/ Ken Grant) | Expert View | Real Vision™
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Transition:
If we focus on the equity markets, I think one of the things that I believe in that I don't necessarily feel is socialized among professional investors is just how biased the return opportunities are on the long side. And this was not always the case. But every professional investor I know in equities makes almost all of their money on the long side, which does not mean that they shouldn't be trading long and short, because there are certain benefits to doing that.
But the idea of making money on the short side may have existed 20 years ago, now it's a myth. And there are reasons for that. If you sit down and think about it, 98%, 99% of the economic entities, individuals, and enterprises that have the ability to impact stock pricing benefit when stocks go up. And I'm not just talking about fund managers. I'm talking about CEOs and regulators, even, and politicians and investment bankers. That's a hell of a tailwind.
And the reason that I bring that up is that in general, while I do believe long-short trading is very appropriate, I do see the performance returns on the long side, which means when you go through periods of difficulty here, it really becomes about preserving capital so that you can buy stuff cheap, because if you think you're going to sell Apple at $210 and write it down to $170 and that that's going to be an easy trade, it's not