oldschool CxC

Friday, November 03, 2006

The problem of the short-seller is summed up in my favourite financial adage: "The market can stay stupid longer than you can stay solvent."


Blogger Erik said...

Fixed the link for you. I like that the guy sticks with index funds, because that's my general strategy but formed more from laziness than anything else. But is there a buck to be made if the dollar is truly heading for a fall? And can AD be the man to make that buck?

8:58 AM  
Blogger A. said...

I doubt it.

I believe that saying is attributed to the late great John Maynard Keynes, although he used the word irrational, see bust of LTCM.

He also had the great quotes:
"In the long run we are all dead"
"[Investment is] intolerably boring and over-exacting to any one who is entirely exempt from the gambling instinct; whilst he who has it must pay to this propensity the appropriate toll."

3:54 AM  
Blogger Erik said...

Reminds of the running comment James Taranto always uses when headlines or news stories refer to a decreasing or increasing "rate of death": "You mean it's less than 100%?"

10:42 AM  

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