Turn to Your Left at the End of the Sky

Hedging your House

The Chicago Mercantile Exchange recently introduced housing futures and options. This is a long overdue idea and I look forward to the day when it is accessible to individual investors who don’t have membership on the exchange. The derivatives are based on the S&P Case Shiller Home Price Index, which tracks housing prices in ten major US cities. Interestingly enough, you can buy housing futures for 2007 at a considerable discount to today’s price.


September 18, 2006 - Posted by | Housing, Investing

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