Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: sea_biscuit who wrote (57717)	4/8/2006 11:47:41 AM
From: Jim McMannis	Respond to of 110194

Put homebuilders

To: sea_biscuit who wrote (57717)	4/8/2006 1:57:02 PM
From: ild	Read Replies (1) \| Respond to of 110194

I don't think there is a low cost reliable hedge for a house. Is it in a bubble area?

To: sea_biscuit who wrote (57717)	4/8/2006 8:09:39 PM
From: Oblomov	Read Replies (2) \| Respond to of 110194

Dipy, I suggest you look into opening an account at hedgestreet.com. For a modest sum, one can buy options on housing prices. The leverage is quite good: $1 hedges $1000 of underlying value. For several hundred dollars at risk, one could hedge the entire value of one's house. hedgestreet.com Note, this actually is hedging the value of houses in a geographic location near your house, not the equity of your house in particular. Robt. Shiller has praised Hedgestreet. Their derivatives products come close to his proposals for hedging vehicles for households.