© Reuters. How To Profit From Hedge Fund Forced Selling: Part 2
Today’s article features the SPY and reveals “How To Profit From Hedge Fund Forced Selling (Part 2).” Read on for all this important investor information.In part 1 of this series, we learned how the forced selling of a single hedge fund, Archegos, which was basically managing the money of a single Asian billionaire, had triggered a series of massive losses at banks that had extended it credit to make wildly speculative derivative bets.
Here are the most important lessons we can all learn from this tale of hedge fund forced selling.
The Critical Lessons You Should Learn From Hedge Fund Forced Selling
Leverage used correctly can make you a fortune. A Harvard study analyzed Berkshire Hathaway (NYSE:)’s investing results over 50+ years and concluded that Buffett was averaging about 70% leverage over time.
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