Part 2/9:
Government Bonds
Those not struggling financially often turn to government bonds—an essentially low-risk investment. When the government borrows money through bonds, it promises a decent return, making this a favored option for the wealthy. Such bonds allow the affluent to safeguard their assets while earning interest.
Market Shorting
The wealthy also engage in strategically selling stocks before significant downturns, commonly known as shorting. During the onset of the COVID-19 pandemic, many affluent individuals profited massively by predicting market declines. Notably, hedge fund chief Bill Ackman turned a $27 million bet into $2.6 billion by foreseeing the market crash.