This Breakout is Blasting Off While the Market Sours...

It’s time to throw a roof over your trading portfolio…

Even though the market is throwing investors into the wood chipper right now, homebuilders are a bright spot that could quickly turn into one of your best trades of the year.

In fact, they’re handing you a golden opportunity for double-digit returns over the next few months. Can’t say that about too many sectors these days. And the best part is, nobody’s paying attention…

Everyone’s stuck on the same old housing narrative the financial media have pounded into their heads for the better part of a decade. No one owns homes anymore… No one will ever buy a house again… Renting is back in vogue—and the only projects the homebuilders have left on the books are apartment complexes and other multi-family units. You know the spiel.

But what do the homebuilders themselves think of the market?

Turns out they’re bullish…

U.S. homebuilder confidence is the highest it’s been in ten years, according to numbers just released yesterday morning. That’s great news we can pile on top of increasing sales numbers, which recently came in as the best since 2007.

I’ve been yapping about these stocks for the better part of the past year, as you probably know. And we’re at a tipping point for the housing market right now. Shares of anything related to housing are telling the tale…

Homebuilders Tear Down the S&P...

Housing-related stocks are back in a big way while the rest of the market continues to flop around like a fish out of water.

The SPDR S&P Homebuilders Index ETF is on fire right now, hitting new 2015 highs Monday morning and separating itself even further from the choppy S&P 500. It’s up more than 13% on the year, compared to the broad market’s measly 2% gains…

Homebuilders are just getting started again after a decade of stagnation. Remember, we’re in an environment that’s produced the country’s lowest homeownership rate since 1967.

In other words, homeownership rates haven’t been this low in 48 years. That smells like opportunity to me.

Lucky for us, there are plenty of ways to profit from this emerging trend, from homebuilder ETFs to home improvement stores.

Regards,

Greg Guenthner
for The Daily Reckoning

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