Randy_H

The New MacroShares Housing Funds Revealed

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%

MacroShares to Launch Levered Up, Down Housing Price ETFs

Once there is enough liquidity it should be very possible to build effective hedge positions against one's personal housing position. That is, buying in a down market can be hedged with DMM; sitting out the market can be hedged with UMM.

Hopefully there will be options on these ETFs before too long also. Then quite a few things become possible.