×

Is Commercial Real Estate Next?

tomorrows_playbook_3.jpg

Hedge funds are betting that a real estate downturn may spread to office buildings. Should you bet with them?

Fund managers who were short the residential mortgage space made a lot of money, explains Karen Finerman. Now they’re looking for the next trade and think it’s office buildings.

If you want to play along, she recommends betting against Simon Property Group (SPG), Taubman Centers (TCO) and the iShares Dow Jones US Real Estate ETF (IYR).

Guy Adami agrees.“SPG could have farther to fall,” he says.

Symbol
Price
 
Change
%Change
4403.T
---

______________________________________________________
Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

Trader disclosure: On Dec. 26, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (YHOO), (ATVI), (DIS); Pete Najarian Owns (C), (MS), (N), (ANR); Pete Najarian Owns (HAL) Options, (MSFT) Options, (TGT) Options, (YHOO) Options; Finerman's Firm Owns (VLO), (WMT), (YHOO), (SUN), (GS), (PLCE), (SKS); Finerman's Firm Is Short (IJR), (MDY), (IWM), (SPY), (SPG), (TCO), (IYR); Finerman's Firm Is Short (LEH) And Owns (LEH) Puts; Finerman's Firm Owns (MBI) Puts; Finerman's Firm Owns (MSFT) Options; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns S&P 500 Puts