The inflection point, if there is one, is likely a decade or more away. Real estate losses will be unique to each area. So you're more likely to see a smatterin

The inflection point, if there is one, is likely a decade or more away. Real estate losses will be unique to each area. So you're more likely to see a smattering of "Hurricane Katrina Moments" than a wholesale reversal in the financial markets a la 2008. Deep out of the money options on overexposed instruments is a plausible position to take here, especially during the ~6 week hurricane season. Another thing to note is that it costs money to short -- you are borrowing the shares after all, so you need to pay interest on the loan. This makes a multi-year position shorting select REITs troublesome. The position I'm taking (roughly) is to hold oceanfront property with excellent sea-level protection. Think cliff-front, not beach-front. A different play? Construction companies specializing in sea level mitigation.