I just reviewed the ProFunds SemiAnnual Report, and their report lists about 40 funds, but not any of their Short funds. It is impossible to get information on their holdings! Perhaps they just short the funds they hold in their regular Real Estate Sector Fund, which mimics the Dow Jones U.S. Real Estate Index. In any case, it seems like they don’t want anyone to know what their holdings are in that fund.
Have you checked my other tip, i.e. shorting companies which hold first deed trusts, or anyone else that is bound to go down when the foreclosures start? Subprime mortgage holders are vulnerable. Locally, since our economy is completely reliant on real estate and home equity withdrawal to fuel consumer spending, look for reduced profits at stores (although I’ll still be shopping at Coach), mortgage companies, escrow companies, construction companies, etc. To the extent we could short local companies, it could be a safe play. I’ve never shorted before, and I won’t buy any options. I’ve only bought stocks in the expectation of them going up, so this would be new for me.
What do you think about gold? I think people are crazy for buying gold. Historically, it’s very volatile, and the price can easily go in half again. It’s another bubble, isn’t it, and stocks/commodity bubbles can pop within hours. Too risky. Gold doesn’t underlie money anyway, so how is it a “safe haven”. How could I pay my rent with gold regardless of how deflated the $ becomes. I remember when gold was $250/oz, and what would prevent it from going there again? The gold bug web sites conveniently show the price of gold only from 2000, because that’s the time when it started its sustained upward trend.
Foreign currency CDs are risky, too. Too much potential downside with currency swings.
