Short-selling is now too risky

Investment is all about taking risks to earn rewards.

However, I am beginning to suspect that the risks of being short in this market are too great to justify the potential rewards.

There may well still be money to be made but it could go badly wrong.

My advice is to close all short positions immediately and stay in cash for the moment while we wait for more clues on what might happen next.

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Shares could rally at any point
This is partly common sense. The last 18 months have been a vintage period for short-sellers. We have had a big bear market.

Sentiment is very depressed and by some measures shares look cheap by historic standards. There is the possibility of an explosive rally. In 1974 shares more than doubled in two months.

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