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 lost about $100,000 all total in 2008, but it was all on paper, if that makes sense. So stocks and mutual funds I owned lost that much, but I didn’t feel it, exactly. I still had a job, and our industry wasn’t affected.

So with the guidance of my financial advisor, I just kept investing. We looked at areas we were confident would rebound, and rebound they did. So by the next year, I had recovered all my losses and then some. Looking back now, 2008 just looks like an unfortunate dip in an otherwise upward slope (along with the precipitous drop and rebound that happened in 2020).