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Pastimes : Is a Real Estate Downturn Coming?

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To: dave rose who wrote (78)12/3/2001 1:52:22 PM
From: jonathan romanowsky  Read Replies (2) of 91
 
This is a great post... I've been wanting to do the same out here in the bay area.

I've asked the same question to many people and have received uninspiring answers. We probably can't truly hedge well. Some suggestions include:
- Short a index stock focused on your area. I know there is a Bay Area mutual fund you can by. I have not doen the research to see if there is a QQQ stock that is similar to this Bay Area fund. I wonder if there is one for Boston.
- Short home builders/property management companies with concentration in your area. This concerns me as I don't know if their stock price already bakes in expected future losses. Reality's impact on their stock prices occurs much faster than on our homes.

That's all I've been able to gather.

There is a 3rd obvious one... sell. I can't see getting this one past the wife (with child coming) and inlaws.

Jonathan
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