Don't Build It and the Profits Will Come

Don't build it and they will come. That's right, don't build anything new and the profits will come to those who already have the infrastructure in place. That's really the theme behind this market's advance, the undercurrent that plays out every day.

Let me walk you through it. This morning we heard from the keepers of the Case-Shiller index that housing is up in price in all 20 cities measured, with staggering gains in Phoenix, Las Vegas and Miami. These increases can happen simply because the homebuilders aren't building enough homes fast enough to meet demand. You have a million new homes coming on stream -- still only two thirds of what you would have gotten six years ago -- and that's just not enough given household formation and how many homes are lost every year to natural causes like fire, flood and dilapidation. They aren't building it, so the profits accrue to those few who have the capital to do so....924 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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