Time to Sell the Homebuilders

Make no mistake about it, this morning's preliminary GDP figure was way below estimates. GDP doesn't normally miss consensus estimates by such a wide margin, but today's 0.1% result was well below the 1.2% projection. This is troubling, because analysts were well aware of the severe winter weather we experienced in the first quarter. They either underestimated the impact of the weather, or missed something big.

Speaking of a big miss, you might recall last week's new home sales report for March. That figure plunged to an eight-month low of just 384,000 annual sales, a decline of 14.5%. This was a huge miss of the 455,000 estimate. Again, there was plenty of time for analysts to gauge the impact of the harsh winter....337 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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