The New MacroShares Housing Funds Revealed [View article]
Unless you plan on paying cash when you buy a home, then you *must* employ leverage in your hedge to match the leverage you would be using when buying with a mortgage. Even at 20% downpayment, you are employing tremendous leverage when financing a house.
On May 10 12:14 AM johngonole wrote:
> wrong and you lose big. I would prefer an instrument like this that > is one to one without any leverage. That is if prices move up 1%
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Unless you plan on paying cash when you buy a home, then you *must* employ leverage in your hedge to match the leverage you would be using when buying with a mortgage. Even at 20% downpayment, you are employing tremendous leverage when financing a house.
May 11 12:27 pm
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All Comments by Randy_H »The New MacroShares Housing Funds Revealed [View article]
On May 10 12:14 AM johngonole wrote:
> wrong and you lose big. I would prefer an instrument like this that
> is one to one without any leverage. That is if prices move up 1%