7am shower thought.
Throughout the next few years as the pandemic tech boom wanes. More tech companies will shrink than grow.
For active investors, it's important to know what shorting is during these seasons. Short selling isn't a complicated thing to understand.
Here is the process example.
Choose a stock that you believe will lose value.
Borrow that stock (don't buy it)
Example: Meta @ 300.00 per share 1 year ago and immediately sell it.
Wait till the stock has dropped in value, today its around $90 per share and buy the shares back.
Return the stock to it's previous owner.
The balance is $210.00 per share that you profited from the stock losing value.
That's short selling, and in the coming years will be easier to predict than choosing to buy stocks that are going to gain in value.
This still carries risks but when a market is going down because of multiple causes, i.e. inflation, quiet quitting, supply chain failures, rising energy costs, the obvious predictions statistically forecast downward trends in various sectors. With all investing, do your homework 1st, otherwise it's just gambling.
Have a great day everyone :)
@skanman Or you could spend your life building things instead of profiting off of their destruction. 🤷♂️
@LouisIngenthron hey I didn't destroy them, and i own a tech company that builds plenty, but after a few years and going broke a few times I learned that keeping my money was harder than making it. I thought I would share some of the ways I learned to stop going broke. Keeping large amounts of money is really hard. Making it grow is even harder. So much eats away at it. I actually pay my taxes cause I understand their necessity, I'm not one of those guys that loopholes there way through life. The economy is getting worse for most, understanding how to navigate it can save lives. I even help my employees learn these skills in life cause there's more to life than just the work they do for me. There's no difference between profiting from a stock dropping and profiting from a stock gaining to the markets themselves. But I'm reaching middle age so I want to share more of my experiences that benefitted me and others that were hard for me to learn. That's all. Sorry.
