Pick up Housing

 | Apr 03, 2013 | 2:46 PM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

cat

Turns out that the real worries weren't the stretched valuations of the food stocks or the drugs, but the valuations of the cyclicals that need a stronger economy.

The metals are in free fall and the grains are getting clubbed. I think that oil and gas are headed lower.

And this all plays into the hands of the Fed's bond-buying program. Ben can continue to get away with where he is going because we aren't getting an employment pickup and we aren't getting any inflation.

Second, I don't believe that the materials and metals have huge downside here. I bet that a Caterpillar (CAT) could go down to $75, but not $69 like it did in 2011 and I think that's a stretch.

At this point I think the war talk is more in play than the economic weakness that is taking down everything GDP-sensitive.

You can't game any war with the North Koreans. I don't think that we're about to have anything, but the news is frightening enough that you can use it as an excuse to sell.

That's why my bottom line is that you should start to pick up something related to housing as that's showing no sign of cooling and with the Fed on hold you are going to keep seeing good numbers.

That's my favorite space after this run in the soft goods and the horrendous selloff in housing-related companies.

Columnist Conversations

bears down 4%, neutrals down 2%...that 6% went into the bull column. bulls now up to 52%. that's the highest b...
Futures are down in pre-market as the crisis in Ukraine flares up again. I have to say Putin is much better a...
Quiet trade with again new closing records made... The major indexes all finished positive seem to mark time ...
From one of my readers, who can't emphasize this enough: "Regarding the comments I had been making throughout ...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.