September 29, 2009 marks the one-year anniversary of a truly monumental occassion. It is an anniversary that most investors don’t want to celebrate.
On September 29, 2008, the Dow Jones Industrial Average suffered its worst point plummet in history. To call it a “drop” is an understatement. The DJIA fell almost 780 points on that fateful days. The S&P and NASDAQ also realized massive losses, as each fell about 9% that day. Many people watched in horror as their investment and retirement accounts were obliterated.
But other savvy investors made small fortunes.
To learn what caused this massive drop in the DJIA and other indeces, and how some people profited handsomely from it, read on.
As a quick history lesson, on Sept. 29, 2008, the House of Representatives initially rejected the much-debated $700 BILLION financial rescue plan. The Troubled Asset Relief Program, or TARP, was eventually passed in a slightly-modified form a few days later, but by then the damage was done. The markets were decimated, and still haven’t recovered.
The DJIA has made an impressive rally over the past few months, but still hasn’t erased the melt down from a year ago.
Of course, most investors suffered massive losses as a result of the market melt down. The brave ones stayed in, and will eventually recover. The weak hands were forced out, licking their wounds.
But a small group of investors actually made huge returns that day. These investors were either lucky or smart enough to be in a short market position – meaning they had “sold” positions that they didn’t really own, anticipating a market drop, and then they could “buy” back later.
Some investors held these short positions for the long run, and others (Traders) only for the day. But bother groups were smiling that day one year ago while everyone else wept.
Most casual investors don’t know that you can actually profit from a drop in the markets. Traders know this, and profit from it all the time.
To discover how you can generate handsome returns no matter which direction the market moves, simply enter your name and email address, and you will receive a FREE copy of our e-Book The Guerrilla Trader – Classified Insiders’ Report.
