4. If you want to protect the risk consisting in the fluctuations of the value of your home, you would ideally:

 

  • Want to be long (buyer) in the market for homes in your city.
  • Want to stay market-neutral (neither long nor short) in the market for homes in your city.
  • Avoid investing in the housing market in your city.
  • Want to short the market for homes in your city.

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