If you don’t know much about investing then you shouldn’t short anything ever. People who know about investing will tell you that even when your logic is 100 percent sound, the market isn’t that predictable and in general the market can stay irrational longer than you can stay solvent.
Plus, the news of this would already be priced into the stock, so if anything the price is already low and these companies would need to pivot their business (which would increase the value again) or die (which would lower the price marginally, to zero). Either way, shorting is a bad strategy in this case.
Theoretically, yes. A short is sorta a negative stock. When you hold a normal stock, the price can never go below zero. But when you hold a negative stock, there’s no maximum value that stock could rise to.
If you get investing returns (like from shorting those companies)… you’re ironically not eligible to use the IRS direct file pilot (or at least for this year).
Edit: this isn’t to knock direct file… which is good and cool (and should be expanded to have more features)
Eat shit, lobbying to make simple tax returns something you have to pay Turbo Tax, H&R Block, etc for.
I don’t know much about investing, but i wonder if it would it be a good time to short those companies?
it wouldve been earlier, but now this is priced into the stocks already.
If you don’t know much about investing then you shouldn’t short anything ever. People who know about investing will tell you that even when your logic is 100 percent sound, the market isn’t that predictable and in general the market can stay irrational longer than you can stay solvent.
Plus, the news of this would already be priced into the stock, so if anything the price is already low and these companies would need to pivot their business (which would increase the value again) or die (which would lower the price marginally, to zero). Either way, shorting is a bad strategy in this case.
Isn’t shorting theoretically able to put you in infinite debt?
I think you would be margin called and just have astronomical but not infinite debt.
Theoretically, yes. A short is sorta a negative stock. When you hold a normal stock, the price can never go below zero. But when you hold a negative stock, there’s no maximum value that stock could rise to.
If you get investing returns (like from shorting those companies)… you’re ironically not eligible to use the IRS direct file pilot (or at least for this year).
Edit: this isn’t to knock direct file… which is good and cool (and should be expanded to have more features)
It is already priced in. Our human speed reactions are far too slow when the news has this obvious of a consequence.
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