silverpill23

Great Depression Not Imminent, But Inevitable

Somebody earlier mentioned Einhorn...

I think Einhorn and other intelligent short-sellers are an important aspect of our market system. They maintain a relevant check on the managements service for their shareholders. Poor companies should be exposed and capitalism (something that is undergoing a metamorphosis) should create opportunities.

Einhorn, for example, exposed companies with poor financial position. They did not deserve the multiples bestowed on them by Mr. Market. Being a smart capitalist who is confident with his research, Einhorn placed a bet with the odds on his time. It was simply a matter of time until their financial inequities were exposed and multiples took a slide.

Historic Volatility - and Concentration of Stock Ownership

i have also recently heard about the significant footprint of the institutional investors. are there any books or articles that further explore the effects of institutional investing on a) the market b) the trend toward indexing and/or c) the herd mentality and it's effect on stocks/bonds?