Three Backdoor Housing Plays

Since the summer of 2011, the homebuilding index SPDR S&P Homebuilders (XHB) has more than doubled as the housing sector finally staged the start of a real recovery after a few false starts. I wish I could say my portfolio has been stocked full of homebuilders such as Toll Brothers (TOL) and KB Home (KBH) over the last 18 months, but that would be untrue. I suspect that like most investors, I completely missed this move. I will take solace that the banks and some consumer discretionary names in my portfolio over that time frame have benefited from the improving housing market.

At this point, I think that is how investors need to play the recovering housing market. After their huge run, homebuilders' valuations seem fully priced. However, there are several "backdoor" housing plays that are more reasonably priced and should have significant upside ahead of them. Here are a few I like....400 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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