Homebuilding is the Ultimate Boom-and-Bust Industry

Eddy Elfenbein submits: Despite making huge profits, homebuilding stocks have been pummeled lately. Check out how low some of these P/E ratios are:

This is the ultimate boom-and-bust industry--it's all about timing. Don't even think about buying a homebuilder until the last person has given up on the industry. Here's how the sector has performed over the last three years: