Things always become obvious after the fact
– Nassim Taleb
from Truth in Gold:
I issued a “sell” on the new homebuilder stocks at the end of January (Dow Jones Home Construction Index basis – DJUSHB). Since then, the DJUSHB is down 18% and has been down as much as 26%. This is a remarkable call considering that in the same time period the S&P 500 is up 20%. During this same period, homebuilder company executives have been dumping their shares at a stunning pace.
I have been postulating that what has been promoted as a housing market recovery by the financial media, Wall Street and the Obama Government is really nothing more than a dead-cat bounce in a long term bear market that has been fueled by a couple trillion in taxpayer-backed Federal Reserve and Government stimulus programs.
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