For a Gauge on Housing, Look to Washington
Amazingly, we've just heard the first bubble warnings about homebuilder stocks, which have inflated over the past year on hopes for a housing-market recovery. For instance, shares of Toll Brothers (TOL) and Lennar (LEN) have more than doubled, and Pulte (PHM) is nearly a three-bagger.
Even after Wednesday's downdraft amid worse-than expected new-home sales numbers, I suspect that call is premature, but it still worth measuring, for the following reason. While the adverse credit environment I flagged in June hasn't spoiled the party (thankfully), it could occur via post-election tampering with the tax code. ...970 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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