Wednesday, August 12, 2009

Residential construction has bottomed (2)

According to the Bloomberg Home Builders' Index, the stocks of major home builders have risen 124% from their lows of last year. If the stock market has any ability to look across the valley of recession, then it's beginning to look not only like residential construction is rebounding, but that the rebound could be V-shaped (if not robust). Toll Brothers, Pulte Homes, and Centex are all up strongly today on better-than-expected earnings announcements. Expect to hear more such news. Green shoots are everywhere and they just keep coming.

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