Refining the Investment Universe
Market participants usually find the vastness of the market quite intimidating. Thus, before we start putting the ideas we've covered in previous chapters into a combined investment strategy, we will dedicate a short chapter to reducing the market to a manageable investment universe.
In this chapter, we will start with some conceptual blind spots of the long/short business in an attempt to provide some valuable context to the real world you will be trading in. Next, we will follow the money to uncover what investors really want, by considering some major incidents and topics that have shaped the way that traders and markets operate.
We will cover the following topics:
- Avoiding short selling pitfalls
- What do investors really want?