The title sounds similar to Michael Lewis`s "The Big Short" and the concept remains the same. The Wall Street Journal reported that hedge funds are preparing to make huge returns in case the market tanks.
As with Michael Lewis`s book, hedge funds can make a bet that a bond defaults by buying credit-default swap (CDS) contracts. Here are two other ways mentioned by the Journal on how to profit from a bearish market:
- Buy a put option on an ETF.
- Increase cash holdings.
The full article can be found here.
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