Iron ore price, page-3558

If ASX banned shorting, then I wouldn't be surprised if ASX bounced 10% within 1-2 months of this occurring. The heavily shorted stocks would probably bounce by more. But I can't see how this will occur whilst ASX has their conflict of interest. Perhaps the media could take them to task.

I remember reading in the AFR about a month ago, a hedge fund manager claiming the benefits of shorting were to stop asset bubbles from occurring. He went on to say that if shorting was allowable or possible in the residential market (which obviously it cannot be because it is such an artificial process and couldn't be applied to real estate), then our real estate wouldn't be overvalued, and our younger generation Australians would be able to afford to buy a house. Whilst there is some merit in what he is saying, I would prefer to allow the market to let it do its thing. I don't mind asset bubbles, and would prefer to have a higher ASX valuation.

Whilst shorting is allowed, imo real estate will always be a better investment than shares for mum and dad investors.