Savvy Trades and Investments

[cliffvb]

Not surprised to see the home builders sell off some today after the Fed says to expect 3 rate increases next year. They have also had a great run in the last month.

I remain bullish. The builders jacked up home prices on that huge run-up in lumber last spring. In fact, they have continued to increase prices since then as demand remains very strong. The supply chain issues will also prevent them from over-building as they have before. I expect margins to continue to increase over the coming year. PEs, both trailing and forward, are in the single digits...some in the low single digits. I think they have room to run, if the stock market doesn't turn south.