Based on the long-term real estate cycle we expect continued up moves in all stocks related to real estate and housing. There are numerous candidates above and beyond those that we track in our Monkey House section.
There is considerable concern about what might happen to the uptrend in real estate once interest rates begin to officially rise. We have stated frequently that unless interest rates begin to rise sharply and repeatedly, real estate will continue to fare well. We believe that we are only a few years into the long-term cycle, and we expect considerably higher prices. Remember above all that timing is the most important consideration, and therefore we must wait for current downtrends to end or for support levels to be tested before we can make additional recommendations.