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As a "hedge" against the market falling, Jones also picked out some stocks he believed to be overvalued and bet against them — a practice known as "selling short".
Last week, investors shed more technology issues believed to be overvalued, and even the more established companies like Motorola, Cisco and Oracle.
Some people argue that since defined-benefit pension funds' liabilities are correlated to wage growth and inflation, long-dated inflation-linked bonds would be a better match than equities.Crunch timeShifting out of shares and into fixed-income investments now, though, could mean locking in equity losses and buying into bonds at a point when they are widely believed to be overvalued already.
As a "hedge" against the market falling, Jones also picked out some stocks he believed to be overvalued and bet against them a practice known as "selling short". Jones's fund regularly beat the Dow, and by the late nineteen-sixties it had attracted many imitators.
Sells short stocks believed to be overvalued.
Similar(55)
But, like some other brokers, she believes that properties continue to be overvalued.
He believed that construction projects tend to be overvalued, when in fact it's more important to spend time in one community as it moves forward.
Research consistently shows that the market takes the issuance of stock by a company as a sign that the company's managers who are in a better position to know about its long-term prospects believe the stock to be overvalued.
Oil caused the bolívar to be overvalued.
What does it mean for a business to be overvalued?
"You expect IPOs to be overvalued.
More suggestions(16)
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believed to be acquired
believed to be dominated
believed to be released
believed to be affected
believed to be initiated
believed to be impaired
believed to be synthesized
believed to be generated
believed to be composed
believed to be secreted
believed to be carried
believed to be engaged
believed to be tied
believed to be lost
believed to be based
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Justyna Jupowicz-Kozak
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