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The main problem I see with short-selling that hasn’t been mentioned is the limited upside. It’s always a short-term trading strategy as opposed to long-term investing. Not to mention the unlimited downside of course.

The other problem with shorting stocks is you have smart people working insane schedules trying to prove you wrong. You may be right in thinking you’re smarter than the average investor in stocks like Tesla or Amazon. But it’s unlikely you’re remotely as smart as the people leading those companies.

Those people will look back and laugh one day... and when that day comes you’ll be crying in your beer if you can still afford one. Why risk it?

I only have stocks left in my 401k and companies I work(ed) for. I got out two years ago in favor of buying another house. So far that has turned out better than staying in the market. I’m patiently waiting for more rewarding times to get back into stocks. And if that day never arrives, apart from being a shocking anomaly, I’ll still retire just fine.

Mark
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