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Haha it's not really about the stock itself. It's about how you bet in the market. If you truly believe that the market will fall, you can short sell and index
by loftyai 7y ago
Haha it's not really about the stock itself. It's about how you bet in the market. If you truly believe that the market will fall, you can short sell and index fund or purchase some put options on that index. If the market does fall, you will make money as a result.
You just need to make sure the instrument you are betting against is representative of the overall market.
- onlyrealcuzzo 7y agoOkay... but who issues the instruments? I mean, what happened to instruments sold by Bear Sterns when they were acquired? And what instruments are you actually buying? Are there put and call options for CoreLogic Case-Shiller???
- loftyai 7y agoMany large market makers issue these instruments. They are not traded OTC and thus would not face liquidity problems like the OTC instruments people couldn't offload during the GFC (specifically like those guys in the Big Short). As far as what the instruments actually are: they are puts on broader market REITs/ETFs as well as localized ones. We cannot name the specific instruments as we do not want their prices being bid up. Hope this clarifies and of course happy to answer any more questions you may have!