Catching the Wave: The Homebuilder Mirage
No one liked homebuilders in October, before the Philadelphia Housing Sector Index (HGX) rallied 73% to current levels, but folks sure seem to like them now. All day long on financial television and websites, the buzz is about the homebuilders and their move to new highs. But a detail that's consistently left out of the "whole truth" is that they are only at new highs if you leave out 2010, 2008, 2007, 2006, 2005, 2004 and half of 2003.
In fact, they are only at new highs above their 2012 and 2011 peaks. Unfortunately, the HGX current level, around 125, is still 57% below the 2005 peak. So, there you have it: the whole truth....407 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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