The Rodney Dangerfield Housing Market: No Respect

This data on housing leads us to feeling like Rodney always did. He never “got no respect” from anyone, not his parents, not his wife, not from any strangers. As surely as was true for Rodney, housing is getting no respect from investors right now. We advise investors to believe that housing will produce outsized success over the next 10 years relative to stock market returns. We like where this puts our investors in US homebuilding companies like Lennar (LEN), DR Horton (DHI) and NVR (NVR). Further, it makes us believe that people are being far too dour about the prospects of the economy, due to this same data. Like Rodney’s says, housing is “where the action is.” Right now, it gets no respect.

Fear stock market failure,

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Disclosure: The information contained in this missive represents Smead Capital Management’s opinions, and should not be construed as personalized or individualized investment advice and ...

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William K. 3 months ago Member's comment

Itis difficult to respect an industry that only builds huge houses and expensive condominiums. Really, how can we respect the builders of monster houses?