To short or not to short. That is the question. With Tesla’s big short squeeze yesterday I was asked a ton of questions on the dynamics of shorting. Focusing our attention today on the strength of the US Dollar and the subsequent pressure it has placed on commodities, we can see the real value of understanding and potentially implementing the shorting dynamic into one’s financial plan. It doesn’t have to be done directly with borrowed shares. Alternatively, one may consider using inverse ETFs or perhaps put options. Each aforementioned approach has its own specific risks and should be understood carefully before implementing. Keep in mind, this can be used to hedge rate risk, or even equity exposure.

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Al Abaroa
Al Abaroa
Al Abaroa began his career on an equity desk in 1993. He carries with him over two decades of experience as a Financial Advisor, and currently serves as Wealth Management Coach at Prosper Trading Academy.