why don't people short more?

[ajc3388]

I've heard that 3/4 stocks follow the market direction. so if 3/4 stocks go up during bull markets, then 3/4 stocks go down in bear markets. Wouldn't it be more prudent to short rather than go long on stocks right now?

[mrmarket]

If you knew what direction the market was going, you wouldn't even need to look at stocks. You could just short the index and go to sleep.

My personal feeling is that markets are predisposed to create value. Companies operate to make profits. The more money they make, the greater the value created and the higher the stock price.

Since stocks, in the long run, are biased to go up, then it makes more sense to be long than short - in the long run.

But then again, in the long run we are all dead.