November 1, 2011
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of wood-products producer Universal Forest Products (Nasdaq: UFPI ) look stunted today after falling as much as 10.5% on light volume.
So what: The new government plan for easier access to mortgage refinancing options left homebuilders in arrears, with industry giants from Lennar (NYSE: LEN ) to MDC (NYSE: MDC ) falling much faster than the general market -- and Universal Forest's main business lies in supplying materials to new construction.
Now what: Anything that helps homeowners stay in their old homes rather than commissioning a new one will obviously hurt this entire market sector. On the flipside, we'd all need to take better care of our aging homes instead, which explains why Lumber Liquidators (NYSE: LL ) , Home Depot (NYSE: HD ) , and Lowe's (NYSE: LOW ) are beating the market today. But all things considered, I'd much rather look as far away from the housing market as possible for my next investment. Take a look at these five terrific stocks that the Fool owns and you should too -- there isn't a homebuilder or lumber hauler among them.
Interested in more info about Universal Forest Products? Add it to My Watchlist.