KG notes:'even if you are long it always good to listen to people who are short.' Funny thing is holders often resent people who open short positions. Yet they are fine about holders selling-out. The 2 transactions are indentical.... based on the same assumption.... that the SP has risen to full value and most probable future outcome is SP will fall. Closing-out and taking a profit incurrs tax. But it's far smarter to pay tax on a profit than hang-on so long one has no profit at all. PS.I wrote a couple of posts this time last year cautioning RIO holders to exit as 'SP could drop $25 in a session if BHP pull-out." It proved prophetic and i remember someone commenting re this post. I am about 30% sure it was Kenneth Galbraith. Ring a bell??
BBG Price at posting:
$8.20 Sentiment: None Disclosure: Not Held
