Societe Generale tells clients how to prepare for 'global collapse'

purch

Right, lemme get this straight.

So, if I short Technology Stocks I'll be saved from

'global collapse'

:rolleyes:

......ok sorted !!!!!

Je suis, sur la valise !!!

Generali

I just worked out who you are (thickie that I am).

I hope all is well DD(5).

chopperharris

If the price of crofts and smallholdings start to rise with the rich and powerful favouring that as invesments then one will be needing new underwear.Also look for gun ownership increases.

So a financial institution is pulling the scare strings , nothing new to see there then.

Generali

Just a thought on the OP.

If you short something and everyone else is bust, who are you going to collect from?

ThrowingStonesAtYou

Generali wrote: »

Just a thought on the OP.

If you short something and everyone else is bust, who are you going to collect from?

I thought the idea of shorting is that you borrow shares from somebody while things are ok and sell them (and get your money), then when it goes tits up you buy back the shares cheaply and give them to the person you borrowed from. If they are bust it wouldn't matter to you I don't think.

Generali

ThrowingStonesAtYou wrote: »

I thought the idea of shorting is that you borrow shares from somebody while things are ok and sell them (and get your money), then when it goes tits up you buy back the shares cheaply and give them to the person you borrowed from. If they are bust it wouldn't matter to you I don't think.

I guess you'd be left holding a load of useless cash. Unless your trade was sell short some shares (for which you get cash, obviously) and then use that cash to buy gold bullion/coins/shotgun shells etc.

It's a pretty risky trade though.

purch

I thought the idea of shorting is that you borrow shares from somebody while things are ok and sell them (and get your money), then when it goes tits up you buy back the shares cheaply and give them to the person you borrowed from. If they are bust it wouldn't matter to you I don't think

No.

I am short the market as a whole, and individual sectors too, and I havn't borrowed a thing from anyone.

But I guess the 'old wives tales' that get peddled around the intergoogle are far more interesting than the facts.

purch

If you short something and everyone else is bust, who are you going to collect from?

Sh*t !!!!!! :eek:

Now you tell me :rolleyes:

ThrowingStonesAtYou

purch wrote: »

No.

I am short the market as a whole, and individual sectors too, and I havn't borrowed a thing from anyone.

But I guess the 'old wives tales' that get peddled around the intergoogle are far more interesting than the facts.

Well I made the effort to look it up, what more do you want? Why don't you enlighten us as to how it works?

Edit:

These 3 links back up my version of it:

http://www.investopedia.com/university/shortselling/shortselling1.asp
http://en.wikipedia.org/wiki/Short_(finance)
http://news.bbc.co.uk/1/hi/7519190.stm

Are you telling me there is some sort of internet wide conspiracy to give people the wrong information about what short-selling actually is?

purch

You could buy Short (Inverse) ETF's

You could buy Puts, you could use a Bear Call Spread, or a Bear Put Spread, an In the Money Naked Call would be a good strategy to use if you were expecting a deep sell off in the market. (very risky though as you are 'naked'), or of course a Put Backspread would give you maximum protection whilst you would benefit from a sizeable portion of any downmove.

I could go on, but I am boring myself :eek:

P.S. The wikipedia article is very enlightening