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Is shorting partly to blame for the plunge in media shares?

Back to what is now the rather old question of whether it just "the fear factor", or if it is the market’s loss of faith in the media's business model that’s to blame for the recent hammering the industry’s received on the worlds bourses:


This piece on short-selling in today’s Independent reminded me that media analysts I’ve talked to did mention shorting could be partly to blame for what Stephen Glover described as the City having gone ‘barking mad’ over newspapers. Short-selling is much more common these days - only Tuesday Berlingske wrote (in Danish) it has now even caught on among private investors - and could have exacerbated the swings of the market, forcing the value of media shares much lower than there was reason for (the rationale being: if you believe media will suffer as a result of the temporary woes of the advertisement market, you might downgrade the shares but not send them quite as far down as they have been).  


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