Ann: Appendix 4E and FY20 Annual Financial Report, page-133

Hey Fatman8

If management was always competent, did not exercise political influence and did not engage in fraud, then there would be less need for shorts. I want to trade in markets where prices consistently reflect company and market fundamentals. Where corporate spin is tested and called out if found to be BS. Your return on investment is a function of your exit price and your entry price. Shorts can give you transitory opportunities to secure stock at reasonable prices. Think of the short as the guy who - on the ski slopes - deliberately shoots into a mountain ridge to trigger a small avalanche so as to prevent a larger and catastrophic avalanche occurring later. In markets in Asia - China, Korea and Japan - where political interests actively discourage shorts, you get fantasy land valuations, which eventually gives rise to either (a) super low returns on capital (because capital is chronically overpriced); or (b) large outright losses borne by shareholders as reality sinks in. Now in the US we have the Fed buying stocks, which does not reflect risk reward considerations. Hence BS valuations, BS momentum. To invest in the US, you have to ask - is the Fed behind this? What sort of market is that?