short funds

How do the new shorting rules affect funds that short eg. xlf,skf,qld etc.?

How do the new shorting rules affect funds that short eg. xlf,skf,qld etc.?

Morningstar.com
Short-Sale Restrictions and Inverse ETFs
Friday September 19, 7:00 pm ET
By John Gabriel


The bottom line is this: The lack of counterparties means that new swap agreements are extremely difficult to obtain, so no new assets can be invested and no more shares created (see ProShares' press release).

http://biz.yahoo.com...53823.html?.v=1

Year-to-Date Performance of the SEC's No-Short List

Posted: 21 Sep 2008 08:25 PM CDT

Now that the U.S. government has accelerated its activism on behalf of propping up stock prices, I thought I would take a look at the year-to-date (YTD) performance of the stocks on the SEC's no-short list. I took a look at the list as of September 19, 2008. Certainly, this list could expand given the bold move of Australian authorities to ban ALL short sales in their stock market. I removed any stock that had less than 25,000 shares of daily trading volume over the YTD period. I also removed three stocks that were not trading last year. These steps dropped the SEC's no-short list from 799 to 444 stocks. Of these 444 stocks, an amazing 46% have positive gains for the year now. I would say that such performance is pretty good, especially considering the S&P 500 is down 15% year-to-date. Given the poor prospects for the American economy going forward, I am guessing that there are a whole lot of shorts who are itching to get back into the game…


http://www.drduru.co...NoShortList.htm

How do the new shorting rules affect funds that short eg. xlf,skf,qld etc.?

Morningstar.com
Short-Sale Restrictions and Inverse ETFs
Friday September 19, 7:00 pm ET
By John Gabriel


The bottom line is this: The lack of counterparties means that new swap agreements are extremely difficult to obtain, so no new assets can be invested and no more shares created (see ProShares' press release).

http://biz.yahoo.com...53823.html?.v=1

This is just what UFO has explained here several times is the last few days--and why some of us are adamantly opposed to bans on short selling. It's the "law of unintended consequences" in action. When you shut down one part of the market, you inadvertantly close off many other vital parts of the free market process, and damage the entire capital formation process in the bargain....D

Good interview. Glad I read it. Mark