2 ms·

I'm debt free and employed, so I shouldn't be too worried about my own prospects, but when the college tuition bubble pops, so will the value of my house since

• joeyrideout 7y ago
  If you are expecting a drastic decline in housing, you can hedge by holding financial derivatives that increase in value when the market declines. e.g. NYSE: REK, SRS, DRV. This will decrease your downside exposure for the cost of the ETF (in this case) management fee. In other words, housing market insurance. Note that it will also cap upside as any gains in housing prices going forward would be offset by losses in the derivative. Such is hedging. The portion of your investment that you leave unhedged depends on your risk appetite. As of now it sounds like you are 100% unhedged and you aren't comfortable with that. I'm not a financial adviser. This is just food for thought.
• cannonedhamster 7y ago
  I wouldn't be too worried in BOS. There are multiple categories of companies in the area that work to keep a total collapse from happening. Further out west in the state you get problems, but not near BOS proper. It'll be a hit but then the rebound will be quick.
  • ocschwar 7y ago
    Those companies are here because the colleges are here.