After reading the article, I honestly didn't find this too shocking. Over the past few months, numerous economic indicators, including some surprises like manufacturing and exports, have shown that the economy's improving (albeit slowly), so it was only a matter of time that housing would slowly catch up. It's pretty amazing which firms are getting in on the action.
Zuckerman cited SAC Capital, Blackstone and Caxton Associates as among the funds making big bets on homebuilders, like Beazer Homes (BZH) and Pulte (PHM). Generally speaking, homebuilder stocks have been on a tear, with the S&P Homebuilders Index (XHB) up nearly 70% since its October low while the iShares Dow Jones US Home Construction ETF (ITB) is up more than 75%.The bullish cash for housing rests largely on record levels of affordability, thanks to a combination of low rates and a steep decline in prices since the highs of 2006. In addition, bulls are betting on pent-up demand for housing from new families and young adults.
Although the article does offer reasons why it's a bad idea, What do you guys think? Is housing a sucker's bet?
More generally, do you guys genuinely believe the economy is recovering?
News flash : investing in equities that are home builders who have been slaughtered over the past few years is NOT a direct bet on the housing market. Vastly different
And no, housing is fucked to flat for a few more years. Enjoy all that shadow inventory
http://4.bp.blogspot.com/_pMscxxELHEg/SuhfZodvHWI/AAAAAAAAGqQ/FFoTUpo_L…
if the housing market is going to recover it would probably have to normalize first looks like that some way off
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