Yesterday, new home sales came in at 369K, a "big beat" to expectations of 347K-and up from the 343K previously! All of the media outlets subsequently reported the GREAT news…the crisis was over…homebuilder stocks were again a ‘buy’!
But what does this really mean? The chart below sums it up.
And, on top of that, a “sale” is defined as a deposit taken or sales agreement signed…NOT a closed sale.
Now, I’m not a stock market expert by any means…but I wouldn’t dedicate my portfolio to home builder stocks based upon this report.
Sorry for seeming to be cynical…but I am dedicated to cutting through the spin and giving my blog readers the story behind the story.
Thanks for reading…Steve Jackson
561.602.1258
