Rules of the Game: Think Twice on Housing

As a group, housing-related stocks rallied back from a big hit Wednesday as the major indices rebounded on a fresh round of "fiscal cliff" optimism. In addition, new data from the Federal Housing Finance Agency, released Wednesday, showed that new-home sales declined slightly last month. The agency also revised September's sales figures lower.

The SPDR S&P Homebuilders ETF (XHB) rose 0.2%, closing at $26.27, after the fund battled back from an intraday loss of 2.1%. But, if we look under the hood of the XHB, there may be less than meets the eye. Of the top 10 holdings in the ETF, only one -- Ryland Homes (RYL) -- is an actual homebuilder....495 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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