How did people profit from the 2008 crisis?

Question

Like how did they make money by predicting it ? what was the strategy?

In: Economics

Answer 1

I held onto my stocks from before the crash and bought more. I had about 130k at the time. It went down to ~30k. I held and bought more at low prices. That portfolio is worth 1.3 million today. I wouldn’t say it made me rich but it did make some nice profits.

The people who got screwed were the ones that were laid off and sold their portfolio for living expenses while the market was down. Many never recovered from that poor decision.