Like many years, 2020 is one in which an investor who was armed with a perfect economic forecast would have been befuddled by stock market action. Who would have imagined that passive equity investors (including many posing as Wall Street strategists) would be so well-rewarded for ignoring the economic downturn?
The Homebuilding stocks represent another Consumer Discretionary group ranking Attractive via our GS Scores; we have held the Homebuilding group for the last year and a half. Homebuilders is an extremely rate-conscious industry group given mortgage rates’ impact on housing affordability (and thus, demand).
Are mortgage rates still too high for a rebound when looking at real mortgage rates?
We consider it incredible that most of the leading economic indicators have staged such traditional V-shaped rebounds with virtually no boost from the housing sector.