Question: One idea would be to take out a big home equity loan and put it in > J> a type of investement inversely correlated with property values. > J> Does anyone know of such a type of investment, or have any better > J> ideas? Thanks,
> This is very clever. I imagine shorting a basket of REIT stocks and > home builders could get close, that is it will be inversely > correlated, but not perfectly. Also it would not require the home > loan. You would have to pay the dividends on the stock and you would > not get interest on the cash from the interim sale of the stock.
Answer: There is a family of mutual funds and related investments out there that is designed to inverse to all of the traditional investments. I think they are called “Rydex” funds, or something similar. They have funds that are designed to go up when their corresponding indicator goes down. Perhaps they have one of these anti-Reit or anti-real estate funds.
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