With the decline in residential real estate prices hitting full stride, it might be wise holding off buying that vacation home. The recent run up in homebuilder stocks and exchange traded funds may seem like a buying opportunity to some, we’d suggest holding off – there might be bigger sales ahead.
Seeking Alpha reviews SPDR Homebuilders (XHB) ETF and favor it as a hedge, since it is negatively correlated to energy and utilities. However it is sensitive to interest rate moves and any further tightening from the Fed will send this ETF to new lows.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.