Homebuilder ETFs: Building Homes To Meet Demand by Leslie N. Masonson
The homebuilding industry is tied to the health of the economy, employment, interest rates, and supply & demand for housing of all types. During difficult financial times, homebuilders and their stocks suffer. However, during strong parts of the economic cycle, homebuilder stocks do well. Heres a look at how this industry and some related industries have performed, as represented by the ETFs in this sector.
Homebuilder stocks typically enjoy strong seasonal performance between November and March, at least based on 15 years of history. Of course, this year, the coronavirus pandemic, the resulting economic conditions, and a lack of employment opportunities have thrown the homebuilding industry into turmoil ...