Housing and housing related stocks remain on our list of favorites. There is industry wide concern that an interest rate increase of the Federal Reserve as early as September could bring real estate prices lower. Our work strongly suggests that the long-term real estate cycle still has higher to go, and accordingly we remain bullish.
As such, we continue to recommend buys at returns to MAC lows on three of our four housing plays. Over the past week, we have continued to profit from recommendations in Williams-Sonoma, Standard Pacific, and the S&P Homebuilders ETF.