Seeking Alpha

Does the divergence of copper (JJC) and the homebuilders (XHB) offer an investment...

Does the divergence of copper (JJC) and the homebuilders (XHB) offer an investment opportunity? Reports of declining economic growth in China, Europe and the U.S. have taken copper lower, likely a bearish indicator for homebuilders, Tim Seymour writes; their shares have soared, but the slowest part of the year is looming for the international real estate sector, particularly homebuilders.
From other sites
Comments (1)
  • Tack
    , contributor
    Comments (14408) | Send Message
     
    Apparently, the price of copper, now, drives home construction, rather than vice versa. I suppose if one assembles a bunch of firemen somewhere, a fire will break out.

     

    Copper has fallen, along with other commodities, because of the China slowdown, all of which has not much to do with homebuilding, especially here in the U.S., as can be seen clearly in the trends If there's an investment opportunity, it's probably long copper, rather than short homebuilders.
    4 Sep 2012, 11:32 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs