How can you short safely, i.e. without getting a short squeeze? With all the automated computer trades, the first sign of loss causes other sell trades to execute, and then you can get stuck w/ a margin call, right? I’m just thinking this could be way over my head. I can identify the companies which will go down, but I’m not sure I can win my bets against the sophisticated traders and computers. That’s why I was thinking of which companies to go Long.
As far as REITs, I don’t know. Read the prospectus, and if you’re still unsure, e-mail the company and get their holdings in writing. Don’t REITs hold real estate in physical form, such as shopping centers, apartment buildings, commercial buildings? GSE investments are held by banks, insurance companies, banks and hedge and pension funds. They buy Fannie Mae and Freddie Mac bonds. I don’t know if REITs hold any bonds.
