Michael Murray: In stock markets, it can be easier to make money by betting on losers, not winners. But shorting can be a perilous practicea

To some socialist thinkers, shorting stock - ie, betting on and profiting from a company's future distress - is disgusting and immoral, and somehow creates unemployment. Not in my view.

Activist investors like hedge funds - who are big into shorting under performing businesses - open the way for revolt against management teams that are under performing and for the rationalisation and/or merger or takeover of businesses that have lost their way. Success ...