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Housing Stocks Beating Mr. Market

Sham Gad
February 29, 2008

Mr. Market is one interesting fellow indeed. While the headlines remain pessimistic on housing and the consumer, Mr. Market seems to be ignoring the noise -- the housing industry is actually one of the best-performing industries so far in 2008. (Imagine that.)  

Consider the following chart:  


Price 1/1/08

Price 2/27/08


Hovnanian (NYSE: HOV  )








Toll Brothers (NYSE: TOL  )




Pulte Homes (NYSE: PHM  )




Centex (NYSE: CTX  )




Two months is an awfully short period of time to derive any meaningful data, but the numbers do provide an example of why to stay business-focused. The overall state of an industry plays an important role in your investments, but if you wait until the newspapers are giving you good news before investing, you are likely to miss out on some very meaningful gains.

The market remains the same
This price movement in the homebuilders should come as no surprise to investors in the sense that at some point any "functioning" business that has been languishing for some time will once again rise. In the case of the homebuilders, this two-month performance could be nothing more than your typically short-term market bounce back. </