stefaith

Homebuilding Stocks Surge Despite Plunging Sales

Yesterday's market action was so irrational, it defies belief. On the day that several builders released abysmal quarterly results, and new home sales were reported as the worst ever, the builders rallied hugely. It may well be that builders are undervalued, though I doubt it, but if indeed they are, why did they rally yesterday in the face of so much bad news?

It is said that homo sapiens is a rational animal. After yesterday, I wonder if that hypothesis can be considered valid.