3 ms·

I'm pretty worried about my family. My dad barely survived 2008. My extended family is heavily dependent on commercial real estate. My dad is the least (relati

I'm pretty worried about my family. My dad barely survived 2008. My extended family is heavily dependent on commercial real estate. My dad is the least (relatively) successful/smallest of the family. He's an agent (and small owner). At the end of 2019 helped facilitate a HUGE __ insert a top firm __ reit deal; $10 digits in a small ish state. Literally the top of the market. There's a reason his friend who sold that insane Sq Ft was already super wealthy. The small buildings my dad owns sounds like many can't pay rent. I personally hedged a bit and including put REIT exposure. But despite having a super pessimistic view on the economy, seeing losses now is scary and I'm thinking about closing (i did move my main savings into much safer territory before the biggest drop and govt said they will buy unlimited bonds/debt..). That idiom the market can remain irrational longer comes to mind

0x8BADF00D 7y ago
It depends on your risk tolerance. If you're hedged with a long put on a decent time horizon, I don't think you have much to worry about, as you're locking in a price in case the REIT falls significantly. Your max loss is capped at the premium+commission you paid for the long put. It helps to have some physical precious metals, as paper precious metals are risky and I don't think COMEX can enforce their futures contracts effectively. This is to hedge against currency risk.