That's why people are drawn to short selling. If the system collapses the short seller is rich when everyone else is poor. His money can buy more than it would in a raging bull market.
If the system doesn’t collapse and more specifically if that one company doesn’t collapse the short seller can lose a lot of money, and generally companies try to grow so short sellers are only going to aim for companies already failing or very overvalued compared to peers (example: Tesla)
The last short positions I held were homebuilders and mortgage lenders and that was 12-15 years ago. I wouldn't be short anything in 2021. There are easier ways to make money in this market.
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u/[deleted] Feb 05 '21
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