My pal Cody Willard has a very interesting post up this morning, with neat psychological ramifications: The hardest trade to make right? Shorting.
"Who’s more scared right now, the bulls or bears? The bears are terrified.
And furthermore, how idiotic do you feel when you ponder buying some puts? And getting net short this market? You’d have to be on crack, peyote, Vicodin, and Zyprexa all at once to be that nutty.
There’s an old saw on Wall Street about how the hardest trade to make is usually the right one. It’s hard to short right now. Feels stupid to even consider it.
Not just for this reason, but even as I remain cash heavy right now, I’m focused as much on finding good short ideas as I am looking for long ones."
Cody used to get a lot of grief from readers for his generally bullish views — but I find him to be a thoughtful analyst who can trade from both sides of the desk . . .
The hardest trade to make right now? Shorting.
RealMoney.com, 4/20/2007 10:18 AM EDT