Homebuilders Down 20% Since March 25th Call That “Cramer Was Wrong”
June 7, 2008 2:15 PM
On March 25th, right after Cramer (and probably Fast Money, but not sure) was saying buy, buy, buy home-builders - we stated wrong - they are going lower. XHB was $23.38 that day and now is $18.81 and I believe headed far lower. The Toll CEO recently came out and said that housing was in a “depression”. Thanks for that insight as I could never have guessed that on my own. Housing and home-building is going lower, period. There are 1.1 million homes currently in foreclosure and another 3 million currently “at least” 1 month behind. All statistics related to housing are at record worse levels, both in numbers and percentages.
The call to avoid/sell home-builders and anything housing related was from a macro view. I do not often make calls based on a macro view and generally let the market tell me who is right and wrong - but sometimes the evidence is so overwhelming that it cannot be ignored. The numbers simply told a very compelling picture of big, big problems ahead. And it isn’t even close to over.
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