My last article made the case for why, 'The Real Estate Boom Is Nowhere Near Done Yet.' If you missed it, you can see it here …
https://www.linkedin.com/feed/update/urn:li:activity:6317772816196476928/
Today I'm going to reveal, 'How To Make A Financial Killing From Today's Low Housing Inventory.'
Warren Buffett, Sir John Templeton and Jim Rogers are three of the most successful investors of all time. They all came from modest beginnings and they all became billionaires because they bought stocks when everyone else was afraid to.
You may have heard some of the axioms that are in line with their investing philosophy:
- 'Buy when there's blood in the streets.'
- 'Buy when a stock (company) is cheap and hated.'
- 'Be greedy when others are fearful and be fearful when others are greedy.'
Some believe the real estate boom of the last few years is getting a little 'long-in-tooth.' But I'm here to tell you the biggest gains (PROFITS) are still to come.
So I present to you:
How To Make A Financial Killing From Today's Low Housing Inventory
The answer is:
HOME BUILDER STOCKS
The housing market is booming. But there's no supply. There's no inventory. This means the boom will continue.
And again, if you think I'm crazy, check this out before passing judgement:
https://www.linkedin.com/feed/update/urn:li:activity:6317772816196476928/
What we have is the perfect setup for homebuilder stocks to skyrocket over the next two-plus years.
It's a trade with incredible upside potential, based on history. In short, when the home building sector gets going, hundreds-of-percent gains are possible.
GET THIS: The biggest home builder stocks rallied 419%... 2,631%... and 776% during the last three big bull markets. And the uptrend is getting started again TODAY.
It's as obvious as it gets. And incredibly, nobody is in on it – yet. But you can take advantage of it by getting in on the ground floor right now by buying the iShares U.S. Home Construction Fund (ITB).
In 2013, the iShares U.S. Home Construction Fund (ITB), the main homebuilders exchange-traded fund (ETF), had over 100 million shares outstanding. Today, that number is less than half of that – below 50 million shares outstanding.
ETFs like this one can create and liquidate shares based on demand. So a falling share count tells me that no one is in this trade. No one is buying home builders. Yet.
See for yourself:
There is real value in these companies right now. After years of a housing boom, you'd expect home builders to be expensive. But they aren't.
ITB's top five holdings are the five major home builders in the U.S. (DR Horton, Lennar, NVR, Pulte, and Toll Brothers). They make up 43% of the fund. Surprisingly, these companies are trading at a big discount to the overall U.S. market. Take a look...
And the latest data shows home prices rose again in July as the supply and demand imbalance continues.
Home prices in 20 U.S. cities climbed more than forecast in July, reflecting solid demand against a backdrop of modest listings of properties, figures from S&P CoreLogic Case-Shiller showed Tuesday.
Buyers are competing for a limited number of for-sale homes, allowing sellers to boost asking prices … (NOTE: My last listing in Temecula's Redhawk Community closed two weeks ago for $26,000 over list price).
Home prices may also get a boost in coming months after hurricanes Harvey and Irma reduced housing supply in parts of Texas and Florida and will thus, create greater demand for home building materials.
So we have a sector that is completely ignored by investors... is cheaper than most stocks right now... and has a history of massive booms. This is perfect.
Watch the share prices of the home builders and the share price of the home builders exchange-traded fund (ITB) over the next two-plus years.
Don't miss out on the fun and profits. I'm convinced triple-digit gains are less than a couple years away.
Give me a call if I can help you in any way.
On Your Team,
Ken
951-760-3833
KenAHall@gmail.com
www.KenHallProperties.com
BRE 01418440
