How could you be rich if you could predict recessions?

Just because you can predict them doesn't mean you have money to invest.


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Most Helpful Guy

  • You essentially bet against the market. 1 thing that happens is when a market inflates too fast and becomes too profitable, it generally crashes. Happened during the recession, the Great Depression, etc. it's just a matter of when. Also, that's generally the premise of hedge funds... Hedging your bets?

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What Girls Said 0

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What Guys Said 4

  • Yes you can, on stocks it's called short selling.
    Basically you assume that a certain stock will recess so you sell it even though you don't actually own it yet. And then only subsequently you buy it. Short selling is not always allowed.

    https://en.m.wikipedia.org/wiki/Short_(finance)

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  • People who get rich in recessions have money already

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  • Make money in book sales, self publish. You can also buy securities on margin, or in this case short sell, which you can ride the trends down and make bank.

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  • You don't need much money to buy deep out of the money puts.

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