Hello Snowshoe, I am still short housing, and am holding the trigger to short some more, perhaps after another blast of the housing rocket engine.
My short position is 26% underwater, but my NAV is up by a relatively solid 16% for the YTD, and so I do not feel any urgency to surrender on the housing shorts.
I am in fact cheering on the housing shares, wishing it higher, so that the expected cleansing will be more complete, pain more exquisite, and repentence more genuine, on the part of the crowd or the lonely.
And if I am wrong on US housing in the intermediate (2-3 year term), I would be more right on Hong Kong and Japan real estate, as the same liquidity drives both. Since my HK real estate plays are leverage 1:1, and Japan leveraged 10:1, I am OK with being more right here than wrong for a while over where you are.
It is all part and parcel to overall portfolio approach, an admitted art sometimes done poorly, but not just now.
Chugs, Jay |
