2007-09-22 10:13:20 · 6 answers · asked by St. Joseph 1 in Business & Finance ➔ Investing
You are at least 2 months late for that.
2007-09-22 14:29:51 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Sell short the shares of publicly traded companies that deal heavily with mortgages.
Example: Countrywide (not the only company)
Instead of buying 100 shares of Countrywide you sell short 100 shares of Countrywide.
If the share value goes down, as you are predicting, then you buy back the 100 shares at the lower price and make a profit.
Note: Countrywide may be past their trouble having secured massive loans.
2007-09-22 10:21:14 · answer #2 · answered by jimschem 4 · 0⤊ 0⤋
As you can't buy individual mortgages, you can't short them either. Though you can buy mortgage backed securities, they're like bonds - another security that you can not short. You can sell bond futures if you think the price is going to fall. I wouldn't advise that, as the Fed is cutting rates and the yield curve is flat - all signs that interest rates are falling, and thus bond prices will be rising.
2007-09-22 10:22:18 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Short home building companies.
2007-09-22 12:31:28 · answer #4 · answered by Ted 7 · 0⤊ 0⤋
ProShares UltraShort Real EstateSRS (AMEX)
2007-09-22 13:47:10 · answer #5 · answered by Wayne P 4 · 0⤊ 0⤋
REITs.
2007-09-22 11:41:31 · answer #6 · answered by Anonymous · 0⤊ 1⤋