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In a real estate market, there is no futures (or even any price ticker), nor short selling. Yet it goes up based on higher demand, and it goes down based on low
by AznHisoka 7y ago
In a real estate market, there is no futures (or even any price ticker), nor short selling. Yet it goes up based on higher demand, and it goes down based on lower demand. If you want to put your money where your mouth is, there are options for that. But if the stock market really wants to be true market, it should act like all the other marketplaces we have in the world.
- seanhunter 7y agoThere are most certainly real estate futures traded on CME. https://www.cmegroup.com/trading/real-estate.html https://www.cmegroup.com/trading/real-estate.html Short selling is possible via inverse REITs and other vehicles. I'm not really sure what you mean by "all other marketplaces". Lots of marketplaces allow shorting. For example (almost) all commodity markets trade via futures and that means shorting is possible by definition. Grain futures have been traded since ancient Babylon to allow farmers and consumers of grain (eg brewers and bakers) to hedge against adverse price movement between planting and the harvest. When I say "almost" all commods trade via futures, for weird historical reasons[1] futures trading in onions is not allowed and so people research onion trading as an example of the effects on a market of disallowing futures trading. The current research suggests that disallowing futures and options trading increases volatility, leading to more pronounced boom and bust as the market struggles to digest information. [1] https://www.good.is/articles/the-great-chicago-onion-ring-why-selling-onion-futures-is-against-federal-law https://www.good.is/articles/the-great-chicago-onion-ring-wh...