Housing-Related Stocks Don't Look Safe
Yesterday's column sparked some interesting conversation around Chez Melvin last night. Most of my correspondents agreed with me that housing is probably overvalued by the stock market and is best avoided. Others dragged out the old argument of markets being predictive and said that the housing stocks were discounting a huge improvement in real estate six to 12 months from now.
I have never found markets predictive at all, and I just love popping holes in that tired argument. The stock market has correctly predicted 12 of the last three recoveries and 27 of the last four recessions. Sectors are even more imprecise as predictors of future economic activity, in my opinion....679 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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