You’re worried that the law of gravity, as it applies to home prices, has been merely suspended, not repealed. Short of selling the attic (or a few outbuildings, if life has treated you very well), how can you hedge against a decline, if it ever comes?

The International Herald Tribune has a very good article on the upcoming launch of the housing index by the Chicago Merc. Actually, its more of a nuts and bolts article: Investing: New hedge on housing [IHT]

Its going to be very interesting to see how whether this strategy compartmentalizes risk to the consumer. Here are some previous posts.

What Do Cheddar Cheese, Nonfat Dry Milk and Housing Have In Common? [Matrix]
Another Exchange Joins The Housing Index Party [Matrix]

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