Barolobill ...one important thing you did not mention is that whether funds short or long stocks they CREATE sentiment ...that is where the role of these funds is questionable
At a time when oil was $145/- Goldman is saying "buy" why because they were long and it paid them to say that and creates news / sells papers etc....then when oil is $30 ...they say " oil will go down to $20"...why? because they holding shorts ....so this story they tell all of us " creates liquidity " finds the price discovery" is all bunkum ...there is no level playing field ....a super fund INVESTOR buys a stock to hope that he can see his fund grow and cannot go to Australian Super and say " lend me some shares to short " ..but hedge funds can AND Australian Super lends them the shares that they perhaps advised the Super Fund to "buy" "good growth story " etc....but then the Fund is not making money so they need to be CREATIVE in volatile market so they pick WOW, or MQG or BHP or TLS and TRADE and say lets short this one , we think it is too high ".....
This is not investing ..it is GAMBLING ...so this is the reason why we dont have a market that is a level playing field AND investment banks should NEVER be given a retail brokerage licence ....this is why we had the GFC in the first place ...U S investment banks ( and also UBS, Deustche bank, RBS and a few more ....)....
BAL Price at posting:
$11.41 Sentiment: None Disclosure: Not Held
