Robert Shiller is ubiquitous, an everywhere and always media phenomenon.
The housing permabear is regularly quoted in publications ranging from The New York Times to the Jamaica Observer. Yet, somehow the Yale professor has been unable to convert that notoriety into trading dollars, judging by figures recently released by CME.
Case-Shiller housing index futures have struggled to generate much interest since first listing in 2006. Just 195 of the contracts – across all expiries – changed hands in 2011 – and that’s a good year. In 2010 it was just 88 contracts.
To put that all in context, CME trades more type-four hurricane and type-two milk futures than it does Shiller's property products.
Despite giving the investor a seemingly attractive dynamic of shorting US housing, and in spite of Shiller’s best marketing efforts, housing futures have yet to get off the ground.
What is happening? New...