Obviously from reading this forum, a lot of ppl out there are anticipating a downturn in certain hot sectors of the US real-estate market. So let's discuss the best ways to play it. A good way to start IMO is to list the more frothy speculative markets, and the companies involved in RE speculation in those areas. Candidates so far include: LEN (low end Miami) BZH (California) WCI (mostly Florida) Let's come up with some more candidates
Are those hedgelets glorified gambling or are they liquid enough to trade? Got this from a book. Private Mortgage Insurers. They are used to insure those people who bought houses on low down payment plans, the weakest hands in the RE market. According to the book, a lot of those insurers have way overextended themselves by making too many promises without the capital to back them up if/when a storm hits. Companies like PMI, MTG, RDN... Just an idea.