Between China's slowing growth, Europe's ongoing debt crisis dragging it into recession, and the U.S. economy sputtering along, investors everywhere are hard-pressed to find ways to make money. However, one trend that appears increasingly real is a broad -- albeit slow -- recovery in the housing market. That's why I'm opting to buy into this long-term trend with my next purchase for my Real-Money Stock Picks portfolio here at the Fool.
The housing recovery is real. Before you object too vehemently, consider several of these data points:
- Single-family housing starts have increased 22% so far in 2012 versus last year.
- The Case-Schiller housing price index has increased for four successive months.
However, since I'm only vaguely familiar with the industry, I want to avoid the risk of stock selection. Instead, I'll rely on the diversification of an index fund to provide me with exposure to this trend while also limiting my downside at the same time. Tomorrow, I'll be adding $1,250 -- even more than the $750 I mention in the video below -- to my real-money portfolio. To hear more about my investing thesis, listen to the video provided below.
As the Oracle of Omaha Warren Buffett has said many times since the onset of the Great Recession, America's best days are still ahead of it. To learn more about a few ETFs that have great promise for delivering profits to shareholders in a recovering global economy, check out The Motley Fool's special free report, "3 ETFs Set to Soar During the Recovery." Just click here to access it now.
Andrew Tonner owns shares of the iShares Dow Jones U.S. Home Construction Index Fund. You can follow Andrew and all his writing on Twitter at @Andrew Tonner. Anand Chokkavelu has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Sherwin-Williams and The Home Depot. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.