Shorting is a bad business model
The guest argued that shorting stocks is structurally flawed and carries asymmetric risks compared to long investing.
The argument
Citing investor Seth Klarman, he explained that short positions lack the compounding effect of long positions; a successful short might yield a quick 30% gain, but cannot compound indefinitely. He noted that investors may find it more practical to simply steer clear of bad stocks rather than shorting them directly.
Hear it yourself
"And, again, it came up with a price similar to $2.50. So you've got rising oil prices in on the back end suggesting the market start starting to believe perhaps that this oil, situation will not go away very quickly. And and and even more more confidently, Dorothy, we're not in Kansas anymore. We you're not going back to the pre February 28 environment. So you put together rising, oil prices, and who knows how high they're gonna go, and more importantly, how how long they're gonna stay elevated with rising cost of capital, rising bond yields. I think in our last, conversation, we spoke about potential list trust moment for global bond markets."