Investors Turn Bullish on Housing Stocks

Tuesday, 09 Oct 2012 08:01 AM

By Dan Weil

A    A   |
   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Recent signs of a continuing, if mild, recovery in the housing market have made many investors bullish on housing stocks.

The Standard & Poor’s/Case-Shiller index of home prices rose 1.2 percent in July from a year earlier, the biggest 12-month increase since August 2010. Record low mortgage rates and improved consumer confidence are leading people to buy homes.

“We’re finally seeing a more sustained and broad-based improvement in home prices,” Millan Mulraine, a strategist for TD Securities, tells Bloomberg. “The housing sector has made an important turn here, and that is being sustained.”

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here

Donald Hodges, a manager of the Hodges Pure Contrarian fund, purchased shares of homebuilder PulteGroup (PHM) at less than half their current price. But he’s not looking to sell.

“I think it’s still early in the game,” he tells The New York Times.

He likes the biggest housing companies best. “The small guy just doesn’t have the staying power,” Hodges says. “I think the business will end up more and more in the hands of the bigger companies.”

Others see better values further up the housing stream, in furniture and home improvement companies for example.

“I do think the homebuilding group is one of the first to move, so some of the easy money has been made,” David Weaver, co-manager of Adams Express mutual fund, tells The Times.

“Going forward, the homebuilders probably aren’t the best opportunity. There are probably better opportunities in related industries such as building products.”

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here

© 2014 Moneynews. All rights reserved.

   Email Us   |
   Print   |
   Forward Article  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Retype Email:
Zip Code:
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

BofA's Financial-Crisis Costs Become a Recurring Nightmare

Wednesday, 16 Apr 2014 19:35 PM

Bank of America Corp.'s financial-crisis hangover is lasting longer than expected, leading some investors to wonder if t . . .

Reuters Polls: World Economy on Steady Course Despite Fears of China

Wednesday, 16 Apr 2014 17:07 PM

The world economy can expect steady growth at best over the coming year, but any rapid slowdown in China as it tries to  . . .

Dow Jumps 162 on Yellen's Low-rate Vow

Wednesday, 16 Apr 2014 16:21 PM

U.S. stocks rose 1 percent on Wednesday, advancing for a third straight session as Federal Reserve Chair Janet Yellen re . . .

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved