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You'd have to do what's known as "shorting a stock": http://www.investopedia.com/university/shortselling/shortselling1.asp http://www.investopedia.com/universi
by michaelpinto 11y ago
You'd have to do what's known as "shorting a stock":
http://www.investopedia.com/university/shortselling/shortselling1.asp http://www.investopedia.com/university/shortselling/shortsel...
So pick companies that would be hurt by a real estate bubble (you can look at the previous bubble, and that can include those who hold the debt or secondary sources like companies that sell things to first time home owners like a Home Depo).
A secondary strategy might be to invest in companies that focus on rentals since that would go up (I'm assuming you're talking about homes and not commercial real estate):
http://investorplace.com/2014/07/rental-reits/#.VZm3J3jsfH0 http://investorplace.com/2014/07/rental-reits/#.VZm3J3jsfH0
Although keep in mind that trying to do a play can come down to timing which can be tricky.
- curiousjorge 11y agoshort REIT? I'm not sure why Home Depot would be affected directly, I can see less demand for housing construction and such. Would commercial estate be affected by residential homes? Wouldn't the rent go down as the asset falls in property value?
- michaelpinto 11y agoLooking at your questions I have a huge suggestion: Unless you know a space really well be careful with investing. Maybe spend some serious time doing research, and place your bets with a small amount of money or even make an imaginary portfolio to track it to see how you do.