The funds are sitting on gains of about 30% over the past three months, but Goldman Sachs recommends investors avoid the sector, The Street reports.
“While the housing sector may be gaining its footing, the improvements are lagging valuations,” according to the report.
“With homebuilding stocks outperforming the market by 3,500 basis points in the last three months, we would wait for a pullback or a clearer picture that housing is healing quicker than it currently is,” said Goldman analyst Joshua Pollard.
SPDR S&P Homebuilders
