C is a financial stock...not a housing stock. C is talking about the delinquencies in their current portfolio extending beyond their subprime portfolio. Most lenders, like C, WFC, etc are tightening the screws on their subprime lending, which will mean that some people won't be able to get into homes that could a year or so ago.
That is where it will impact the "housing" market. That is why the financial stocks are a little more concerning to me than the housing stocks. The housing stocks will take a hit to their bottom line, but they should still be turning annual profits whether they build 200 houses or 20,000 houses. I would not jump into C, as they are not as well positioned and diversified as some other financial companies that are better able to ride out a downturn in the mortgage side of their business (a WFC for example).
Anyway, the typical housing stocks have been so hammered recently, and unjustifiably so in many respects, that I think this is the best time to jump in on a select few. Example, MTH. Already making a profit, which is more than I can say for my TKO holding.
All posts are only in my opinion. I am not a broker or anyway involved in the securities or investment industry. I do all my own due diligence. Any allegations to the contrary are totally fabricated.
