Dominion Homes

So you think the housing bubble is over? Why not put your money where your mouth is by shorting one of the homebuilders, right? I don't disagree, but I wouldn't focus my sights on the big winners like Toll Brothers (TOL).

For example, I'm currently short Dominion Homes (DHOM) on the theory that if you can't make big money in one of the largest booms in history, what are you going to do when the bubble is over? Those of us who saw the last bubble deflate remember that it wasn't the Ciscos or the Intels of the world the fell the hardest, it was the weakest players in the sector like TheGlobe.coms or InfoSpaces (INSP).

The nice part about this kind of strategy is that if you're wrong on your timing and the bubble continues to inflate, usually these losers find a way to screw it up anyway.