Homebuilders Lead S&P 1500 Performance in 2008

Includes: DIA, QQQ, SPY
by: Bespoke Investment Group

Below we highlight the performance of S&P 1500 groups in 2008. We also provide the performance of each group in 2007 as well as their current P/E ratios. Don't look now, but the S&P 1500 Homebuilders group is by far up the most at 7.5%. It has a long, long, long way to go before even reaching its 200-day moving average, but it's a start. At the bottom of the barrel, Semiconductors, Internet and Wireless Telecom are the worst performers year to date, all down more than 15% already.

At the end of 2007, we compared the bubbles and bursts of the Nasdaq and the Homebuilders in a B.I.G. Tips report and in our 2008 Outlook at Bespoke Premium, highlighting that Homebuilders were getting close to a bottom. We also got quoted with a "bottom" call in the WSJ at the start of the year. While they're not out of the woods yet, the builders are on the right track.