Like how did they make money by predicting it ? what was the strategy?
In: Economics
There are a few ways to make money off an economic collapse: in the stock market, you can sell short, meaning you borrow a stock to sell it at the current price, with an obligation to return it later. If the price drops in the interim, you profit off the difference. You can also buy a put option – this is a contract that gives you the right to sell shares at a certain price, called the strike price. If the price of the stock drops below that price, you profit off the difference (or you can just resell the contract to someone else for profit).
If you’re rich enough, you can also just wait on the sidelines with cash and buy up other people’s assets when they’re forced to sell – if you’d bought up a bunch of real estate immediately after the crash back in 2009 or so, you’d have made a pretty good profit selling it lately. This works with all kinds of assets, you just have to have enough money to wait out the crash and be buying when everyone else is forced to sell. This is how economic collapses help funnel even more money upward to the wealthy, because they’re the only ones who can weather the storm, while everyone else needs to worry about making their rent or mortgage payments, and silly things like keeping the heat on and buying groceries.
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