Since these people are investing for the long term, they are in a better position to bear the short-term risks attached to equities.
Ironically, many of its hedge fund clients pulling money out of their accounts could have been short Bear Stearns' stock at the same time, though no one has confirmed a connection.
Naked short-selling also intensifies bear raids by making it easier for traders to short stocks, since they do not actually borrow the shares in advance.
By March 2007 it was short against Bear Stearns, National City, Merrill Lynch, Washington Mutual and PMI, among others, according to documents released by the Senate.
FORBES: Paulson Saw Trading Risk At Goldman, Other Brokers in 2007
Larger insurers should find it easier to budget for possible losses, just as they have been better able to bear a performance falling short of guaranteed returns.
ECONOMIST: Germany's life insurers have gambled away their strength
After losing big time in the 2007-2009 bear market, and short-term in the current market correction, they are under pressure from their investors to take less risk.
FORBES: Lots Of Cash Not Being Spent Will Choke Off The Recovery
There have been three long-term bear markets since 1902, each lasting an average of 14.5 years, and each including at least three short-term bear markets with declines of 20% or more, according to Mr. Timmer.
As Bear Stearns faced insolvency, speculators piled on short bets by purchasing CDS protection against Bear Stearns failing.
Executives from Bear Stearns have said self-interested short-sellers might have contributed to the precipitous decline in Bear Stearns' shares, which, in turn, may have stoked the rumors.
The news comes as brokerage firms post mixed results, with Bear Stearns announcing Thursday that it came short Wall Street's expectations (See "Fixed Income Bowls Over Bear"), as did Morgan Stanley on Wednesday (See "Morgan Stanley Can't Keep Up").
Last week, SEC Chairman Christopher Cox told a Senate panel that the agency was not ignoring speculation that traders colluded to bring down Bear Stearns in a swift short-selling raid in mid-March.
Prices closed near the session low and saw tepid short covering in a bear market.
Meantime, Nymex crude oil futures are higher on more short covering in a bear market.
FORBES: Comex Gold Weaker but Up from Daily Low After China Rate Cut; Bernanke Awaited
Prices closed nearer the session high today and saw tepid short covering in a bear market.
FORBES: P.M. Kitco Metals Roundup: Gold Ends Weaker amid Bearish "Outside Market" Forces
Prices closed near the session high and saw short covering in a bear market.
FORBES: P.M. Kitco Metals Roundup: Gold Rebounds on Bargain Hunting; Bears May Be Exhausted
May silver futures prices closed near mid-range Monday and saw short covering in a bear market.
The U.S. dollar index is trading firmer Wednesday morning, on short covering in a bear market.
FORBES: Comex Gold, Silver Weaker as Key "Outside Markets" in Bearish Posture Wednesday
The U.S. dollar index was firmer Wednesday, on short covering in a bear market.
FORBES: P.M. Kitco Metals Roundup: Gold Ends Firmer Despite Bearish Outside Market Forces
The U.S. dollar index is trading firmer Tuesday morning, on short covering in a bear market.
FORBES: Comex Gold, Silver Higher, with Gold back above $1,500
The U.S. dollar index is trading firmer Friday morning, on short covering in a bear market.
The U.S. dollar index is trading higher Monday morning, on short covering in a bear market.
Prices closed nearer the session low again and saw tepid short covering in a bear market.
FORBES: P.M. Kitco Metals Roundup: Comex Gold Trades Lower in Wake of FOMC Statement
The U.S. dollar index traded higher Monday, on short covering in a bear market.
Crude oil prices are trading sharply higher Wednesday morning, on short covering in a bear market.
FORBES: Comex Gold Sharply Higher amid Bullish "Outside Market" Forces Wednesday
Prices closed near the session high and saw more short covering in a bear market.
The U.S. dollar index is trading firmer Wednesday on short covering in a bear market.
FORBES: Comex Gold, Silver Lower Early on Profit Taking, Corrective Pullback
The U.S. dollar index traded firmer Wednesday on short covering in a bear market.
FORBES: Comex Gold, Silver End Solidly Higher on Fresh Safe-Haven Demand
The U.S. dollar index traded modestly higher Thursday on short covering in a bear market.
FORBES: Comex Gold Ends Firmer, Near Daily High, Which Gives Bulls Some Encouragement
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