Malkiel

Two More Homebuilders Go Bust

Short-covering rallies have been a great source of wealth for shareholders during the bull market and they seem to go on in the bear market, so I say, short away. Investors have gotten used to the credit disaster, losing their AAA ratings doesn't look like the end of the world any more for these companies since everyone else in the sector is taking a hit, and I think these stocks are a good buy. The only possible negative here is whether bond issuers will trend toward going into the market uninsured and we'll see whether buyers care any more, but so far it's not happening...