Don't Get Too Excited About Housing
You want confusion? Check out pending home sales, highest in 18 months. This is a figure that jibes with nothing. Not mortgage applications. Not foreclosures. Not new housing starts. It is just out there as this lone positive in housing, and each time, it causes a surge in the homebuilders, with the usual suspects, D.R. Horton (DHI), Lennar (LEN), Toll Brothers (TOL) and PulteGroup (PHM) being taken up. This, despite the fact that these companies have no earnings momentum, and KB Home (KBH) just reported a miserable number.
Further, they then bring a raft of buying into the home-buying ancillaries, like Lowe's (LOW), which has become a hot stock, Whirlpool (WHR), which is a pathetic company that has never seemed to do as well as it should -- crushed by Sears Holdings (SHLD) the other day -- and Masco (MAS). Yes, Masco! Unstoppable on these days and just totally stoppable on all others....340 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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