Now Forester is preparing for another crash, forecasting a 10%-20% fall in house prices this year and arranging his portfolio accordingly.
“We think there’s big risk in 2010″ for investors, said Forester. “Our finger is on the trigger to get more defensive, but the timing on this is hard.”
Forester’s earlier prediction meant his investors didn’t lose money in 2008, when the Standard & Poor’s 500 Index /quotes/comstock/21z!i1:inx (SPX 1,150, +14.20, +1.25%) was down about 37%.
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