According to Jim Rogers, The Global Investor, “Even if you are outright bearish, Don’t SHORT THE MARKET”. Short Selling is a Worst idea in the current economic situation.
Jim Rogers, the Global Investor says, “Don’t short the market. Stocks could touch crazy levels, but they may be un CURRENCIES WHICH ARE WORTHLESS. Indeed, a Sovereign default and currency turmoil COULD RATTLE WORLD MARKETS in a year or two.”
According to the view point of Jim Rogers, Central Banks all over the world are now printing money in true sense out of thin air only. Recently in March 2009, The Federal Government of USA had printed US $ 1.45 Trillion in the economy out of nothing. Federal Government announced to buy Treasury securities worth of US $ 1.45 Trillion from Federal Reserve banks which means now Government of USA is printing money in the true sense.
This over supply of money could lead the stock markets of world to crazy high levels. If central banks of world print enough money which ultimately collapse the value of US Dollar than you may see S&P go as high as 50,000 and Dow Jones can go 1,00,000 level or even more in a year or two.
The next depression will be of Hyperinflationary type of Depression.
So Short Selling is a very bad idea when governments all around the world are printing money out of nothing. In Short Selling, if the market goes up than the possibility of Loss is unlimited. So it is not advisable to short sell the stocks or anything in the current global scenario.
So No matter how bearish you are about the world stock exchanges, Don’t short the market. It is quite possible that the world stock exchanges go through the crazy high levels and you lose all of your wealth while shorting the shares.
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