When the stock market declines, investors often worry about losing money. However, there are strategies that can be used to make money even when the market is going down. One way to do this is to invest in assets that tend to perform well during market downturns. These assets include bonds, gold, and certain types of stocks, such as defensive stocks and dividend-paying stocks.
Another way to make money when the stock market goes down is to use options. Options are contracts that give the buyer the right, but not the obligation, to buy or sell a certain number of shares of a stock at a specified price on or before a certain date. When the stock market is going down, investors can use options to bet on further declines. This can be a profitable strategy, but it is also important to remember that options can be risky.