Of course, big money is only to be made in volatile markets. In a stable, efficient market, people buy value stocks and make money from the dividends. So, you might think that "Well, I predict bad times, so I should short the market..." But that's not the case in inflationary times:
1) Go where the money will flow, and go where the future is young. This means Asia for the most part. Europe is almost as effed up as the United States, but with smaller defense expenditures.
2) Guard against inflation. You can do this by buying other currencies, gold, or by buying futures on margin, etc.
1) Won't a U.S. crash take everything down with it?
2) Thanks.
Shorting is scary for me due to potentially infinite risk. Is there some other way of doing pretty much the same thing (making money off of declining stocks) without losing more money than you lay on the table?
http://www.mises.org/story/2532
The best strategy seems to be:
1) Go where the money will flow, and go where the future is young. This means Asia for the most part. Europe is almost as effed up as the United States, but with smaller defense expenditures.
2) Guard against inflation. You can do this by buying other currencies, gold, or by buying futures on margin, etc.