Bloomberg is reporting that homebuilders could be a buy now:
"Lennar Corp. and D.R. Horton Inc., the two biggest U.S. homebuilders, advanced after Citigroup Inc. said the industry's 50 percent decline this year has made the stocks attractive. Citigroup led financial shares higher after the largest U.S. bank said it expects 'a normal earnings environment' in the fourth quarter and former Federal Reserve Chairman Alan Greenspan said the credit slump may be ending."
Homebuilders are not buys right now. Not with this.
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In the same day that Citigroup announces possible drops in future profits, the stock market surges with hopes that the credit crisis is over. Compare that with this:
"...the banks need to step into the confessional box and tell us just how much of the $2 Trillion drop in the value of US housing (so far) they are on the hook for. So far we’ve had a Billion here, a Billion there but the big boys have so far had their heads firmly in the sand and that means it’s time for a kick in the ass."
Ostriches, bulls...two names for the same animal? Currently, it seems that way.
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2 comments:
Hey Kiddo, How about that Google?
XAU hasn't done too badly of late either! Consider a longer holding period on your picks.
I definitely agree. Long term. As for google, what goes up must come down?
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