After being on the market for almost a full year, our house sold in early 2006. When we first listed the house I wasn’t aware that the housing market was nearing a top. After a month, I started to do some research. I read a few books and thousands of articles and blogs. I studied historical data and poured through housing inventory numbers. Whenever I had the opportunity I talked to real estate agents.
I went from a guy just looking to sell a house to someone with extensive knowledge of the real estate sector. I came to the conclusion that real estate had peaked and that home prices would come down.
Commercial Real Estate historically follows residential real estate. ProShares offers sector based Ultra Short ETFs. So I piled in a large chunk of my 401K into the SRS (Ultra Short Real Estate). After 10 trading days, it is up 16.1% already. This fund makes money as commercial REITs drop in value.
