bowlmar

8 Stocks to Benefit from the Coming Uptrend in Housing

Housing has a decade of weakness. Take Colorado as an example. Their housing boom led the nation by 4 years, and Colorado did not enjoy the real estate boom from 2002-2006. Home prices were flat or declining in most areas, while the most "desirable", landlocked areas increased slightly. Home prices are falling somewhat, but are mainly stagnant. Home sales and prices will stagnate in Colorado for at least another decade, giving them a 20 year period of no real appreciation. Home prices should fall 20-30%, but Realtors, banks and lenders will do what they can to prop up the market. This will result in a stalemate between buyers and sellers, and stagnate the market further. Plenty of rentals here though, and they are cheap.

What Went Wrong at GE?

GE infrastructure looks good, but the problem is that the LEASE their products. This helps the Ponzi pyramid in good times, but in slowdowns, they'll get killed because the leases won't get paid. They own most of those jets flown by bankrupt airlines.

GE Earnings: Industrial Bellwethers Are Now Getting Hit

Maybe the market will reflect true forward P/E? In the case of homebuilders, the tax break will allow them to fudge earnings of course, but Uncle Sammy can't give money to the entire SP00 - perhaps the Dow though....