I think the best way to profit from a bubble is to not be part of the collateral damage when it pops. That way you are not really relying on timing, just good old common sense.
Of course with big bubbles like we just had in real estate everybody is affected in some way or another.
Just look at Detroit or Michigan they were not really frothy, ok they were frothy but not bubbilicious, but right now they are selling houses below inflation indexed prices.
