At least once a month, there is a big loss or gain to someone, based on a change in market valuation. That story though, is painted (if stippled) across *all* of the shareholders -- value gone from their net liq., because of a market turn. No one bought the other side of that -- there was *no*trade*! Just as big jumps make *all* shareholders "rich" and just as the '08-'09 financial crisis robbed a bunch of IRAs (and made a bunch of late-term investors into "poor" retirees.
Will take a while for the stock market to recover
- Thread starter Ayn Rand
- Start date
Sorry, but that's an entirely glib assumption that assumes $0 long/short in your portfolio, and constant liquidity. "Holding" is a fact of life.
Back to the OP, "Holding long" means you're a'wishin' that the market recovers today, whereas "Holding short" means...... you're wishing the market continues down.