Tuesday, October 23, 2012

Investment Trends:Homebuilding On The Mend

We're a little more than halfway back in homebuilding,according to Joseph McAlinden,Chief Investment Officer at Catalpa Capital Advisors.We've been under-building.The data that we see show that the shadow inventory calculations are actually coming down.The inventory will come to market,but we're gonna have a shortage,and prices will continue going up.
The play could very well be financials and companies such as Home Depot that support homebuilding.For the year as a whole,several million people who are now underwater on their mortgages will actually come back above water.
The National Association of Homebuilders says buyer traffic is rocketing.That means construction workers will buy big pickup trucks and other products,helping the economy as a whole,Mr.McAlinden pointed out.
Joseph McAlinden,CFA,has more than 40 years experience in the investment industry.He has a BA  in Economics from Rutgers University.A frequent guest on business television,Mr.McAlinden previously worked at Morgan Stanley,Dillon Read and Argus Research.
Home Depot(HD),Lowes(LOW)

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