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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Lone Star who wrote (32162)	9/3/1998 11:01:00 AM
From: yard_man	Read Replies (1) \| Respond to of 132070

I know this sounds bad but yesterday may have been the day with long weekend coming up. I bought some deep OOM OEX puts yesterday -- double now. We could go back up -- but todays recent try at a rally was sure met with selling. I think it is a very good idea to hedge your real estate, though -- depending on where you live. Perhaps MB will read that and be able to give you some more specific ideas.

To: Lone Star who wrote (32162)	9/3/1998 12:14:00 PM
From: John Dally	Respond to of 132070

Hi Lone Star, I'm actually in a similar situation, but living in Silicon Valley. If we have mild lay-offs and lower interest rates, then all is probably OK for RE (especially in cash-flow terms). If the lay-offs become as severe as at the beginning of this decade, then RE will drop again. (I would estimate that Silicon Valley RE dropped ~30% from peak to trough in the early 90's.) My answer is to short/put the tech stocks, our primary employers. If your RE is in Texas, I would short/put your local employers, i.e. Dell, Compaq, TI, et al. Alternatively, the NDX is still 20% above where it was at the beginning of this year, representing an attractive alternative. Best regards, John.