Minority Mindset: How to Make Millions From CHAOS
The world is constantly changing. Understanding those changes, and when they can occur, can allow astute investors to make big profits. Most investors focus on the big moves that come from a recession.
The Covid crash in 2020 saw stocks fall 30 percent in just a few weeks. In 2008, the housing market’s weakness led to a major market crash, with some bank stocks down as much as 90 percent.
It’s clear that we get recessions every decade or so. The specifics change each time. And they often catch most investors by surprise. But they tend to lead to big market drops.
That can create profit opportunities for the buyers of put options. Those traders are betting on a price decline for a stock or market in the short-term. And at the bottom of a market, when it seems like stocks may drop lower, it could actually be an opportune time to buy.
Since recessions create opportunities to buy great assets at a discount, smart investors should embrace recessions rather than fear them. It also means having capital available to invest when the time is right.
Investors should look for panic in the market, find clear evidence of overselling. From there, they can look to step in and take advantage of the opportunity and profit from the market’s recovery.