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

If you could have predicted it. Shorting stock would have been a way to profit from it. Shorting is when you sell a stock “now” before you bought it, with the intention of buying it later for less than you sold it for.

For me, I profited once it happened, by buying thousands in undervalued stock.