Homebuilder - Act 2

I was early in 2022 in buying into homebuilder stocks and only to sell them for merely 10% profit and missed the entire rally.

I am looking into Homebuilders again.

XHB is still pretty high, it hasn’t fallen to anywhere near the 2022 low area ($50s). It is trading at about $100 now, the high late last year was about $120, so it is still quite close to the high. But the thesis is good I think, homebuilders are applying for fewer permits, so business will be down a lot soon, and presumably the stock prices will drop. I think they say that the ideal time to buy the homebuilders is just at the start of recession. Apparently that’s typically their lowest price. Then they start recovering as the recession progresses and then they soar in the ensuing recovery (“pent up demand”, etc).