Thursday, December 13, 2018

Cold Spurts

With Christmas less than two weeks away, we remain 'green' here in the Halifax Regional Municipality with off and on cold spurts.

Overall, the stock markets are staying cold with some exceptions I have been watching. More on the rise in awareness over the last year is not just about the lower fees being offered out there but also 'Short Sellers'. When some outfits that 'branded' themselves as sort of investigators of highly invested companies with thousands of followers, they can make a quick buck or even a fortune when a stock plunges on their word.

They could recommend 'sell' anticipating a drop in the value of a stock at a moment's notice or after lengthy research when they conclude something is not kosher even after a company responds and provides details they are wrong.

In the end, it can be devastating for individual investors not aware of a planned surge of 'short selling' driving down the price, which could end up to be a permanent loss or temporary with an eventual stock rebound after a 'Branded' short seller's recommendations are in error or a company has made positive steps to correct any issues.

This has been going on for decades and many an investor is calling on the Government's to do something about the art of short selling that's not always based on fact and outright cons at times. However, no action has been taken to date. Occasionally, short sellers with some influence do end up in trouble with the law by disregarding the rules. One example is the illegal use of 'insider' information and gaining or profiting from it.

So, even with due diligence and all the normal fluctuations in a stock price that comes with it, 'short sellers' are out there waiting to pounce by actually gaining when a stock price drops off the cliff. You can Google 'short sellers' to find out more.

Jumping over to the crypto markets at near mid December, Bitcoin has been holding above the $3000 USD mark for a few days now, which is good as gains come into my crypto wallet. Bad of course if BTC does continue to drop to 3 grand or lower where it's highly unpredictable. The overall ugly part of it all is not knowing when Bitcoin will eventually bottom out and remain within a range for a few months or even climb slowly.

That prompted a lot of former HODL'ers to abandon that plan and sell recently to a tune of billions of dollars worth.

It's always about adjusting with the times and trends. Part strategy planning/gathering information and part ... luck.

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