I was right.

On August 1, I advised everyone to sell short: "So if you have any money to invest, wait for the right moment, then bet on the markets to slide. Things look to get worse." Someone sells short when that person bets the market will lose points. Perce Livermore, famously, sold short on the "Day the Bubble Burst" in October, 1929. He made millions. I knew a brilliant broker who figured out, on Friday, October 16, 1987, on a software program, that the market would drop the next Monday. The broker sold short and made money on one of the biggest crashes in history.

Yesterday, the market dropped 500 points. Fears over Europe’s money problems added to the cause. But—I said to sell short.