Shorting is a contentious issue in the investing community. Many view it as evil, and others view it as a necessary balance in the market. After all, if everyone was only allowed to go long – then who would keep rampant bulls in check? And that is exactly why China is taking steps to limit short selling today on February 3. Whether that continues after this is currently unknown. But many investors use shorting to hedge risk, and I believe it allows a certain fairness in the market, with other people being allowed to take the opposite side of trades. Whilst I certainly don’t agree with a broker’s market making desk shorting the stock and then having the same broker offering the company money in an attempt to close that same short position (value destruction), shorting is healthy (despite one prominent CEO on Twitter calling for it to be banned). It will certainly be interesting to see the outcome of China’s experiment. Foxtons Foxtons is an estate agent which has had a rough fall since initially rising from its IPO. The price almost reached 400p, and then steadily crumbed for a multi-year period, before appearing to…
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