New Short Selling Argument
Nice to see the argument over short selling is rearing its head again. The FD of Aviva describing it as not in the public interest as it drives unreasonable volatility. Aviva are down just over 50% since the turn of the year.
There is nothing in there about the fact that the shares are where they are because of decisions made by the senior management. End of argument.
I note that since the Aviva shares were dumped out of bed on the 5 of March that Directors of the company have bought…wait for it…about £50,000 worth of stock. Hardly a ringing endorsement. If Directors really believe that the short sellers are wrong they should be out there hoovering up as much as they can afford. I have not heard of massive board purchases in Bank stocks recently either.
So far the only people proved right over selling stock have been those selling. Not only that but the continued duplicitous statements by some boards/spokesmen is far more damaging for shareholders in every company than the activities of a few shorters.
When markets fall, ‘short only’ funds do well and (in case nobody had noticed) the markets are well down so far this year. When a bull market returns these funds will struggle, the same way ‘long only’ funds are struggling at the moment.
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