Squeeze cash from a down market

Have some money to gamble? Here’s how you can post huge gains in a bear market. I found this in the May 2008 issue of Men’s Health magazine. There were no huge gains discussed, and a photo takes up half the page because there isn’t much information:Angel investingLong-short fundsSocial lendingBear fundsYou cannot trust the editors to provide you with valuable insight; and in this case there isn’t any meaningful information – huge gains come from concentrating your focus, and your capital on one bet. You win big when there is a lot at stake on one bet, not sprinkling capital around among multiple bets with low impact. Squeezing cash from a down market implies that an investor should be looking for companies that are unprepared to compete well in the marketplace, earnings will be reduced, prospects for improvement dim, and the stock price will significantly fall. That’s where the money to be made is – finding companies that will sink. The other thing an investor could do is hedge downward bets by using net credit spreads.

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