So, it’s fairly clear that Canadian real estate is in a bubble. I made that case in a post here at Money Mamba, but I never put money on it.
Nelson’s taking it to Canadian real estate in his first ever, semi-serious post. And, according to the comments, he’s putting his money where his mouth is, shorting Canadian real estate via a proxy trade on the Canadian banking sector with 20% of his portfolio. It’s an interesting play, one that could make or break his performance – and I think you should read about it.
Timing is the main concern with shorting anything, especially when you position yourself with options. If only the retail investors of the world could buy credit default swaps…I’d probably kill my long-only portfolio and start betting on credit risk.