The Housing Bears Are Wrong Again (the brilliance of Larry Kudlow in 2005)

[swag]

http://www.nationalreview.com/kudlow/kudlow200506201040.asp

via Mark Thoma

Homebuilders led the stock parade this week with a fantastic 11 percent gain. This is a group that hedge funds and bubbleheads love to hate. All the bond bears have been dead wrong... So have all the bubbleheads who expect housing-price crashes in Las Vegas or Naples, Florida, to bring down the consumer, the rest of the economy, and the entire stock market.

None of this has happened. ... Meanwhile, the homebuilders index has increased 76 percent over the past year, with particularly well-run companies like Toll Brothers up about twice as much. The bubbleheads missed all this because they haven’t done their homework. If they had put a little elbow grease into their analysis, they would have learned that new-housing starts for private homes and apartments haven’t changed much during the past three and a half decades. ...

[marmar]

1. If Kudlow says it's a sunny day, grab your umbrella and galoshes.....

n/t

[OmahaBlueDog]

2. That's interesting news, since the market is generally calling conditions 6-9 months out

That tells me that they at least see the housing market hitting bottom, which would be very welcome news.

[marmar]

3. News? You might want to take a second look at the date on the piece.....

n/t

[OmahaBlueDog]

4. Oops - I thought this was current news. Thanks for pointing that out.