Homebuilders crumble into the dust, now in a bear market collapsing more than -20% off the top in late November.
Wall Street labels a -10% drop from record highs as a 'correction' and a -20% off the top is called a 'bear market'. These are bonehead metrics but everyone watches them so they are important. They are bonehead because an index or stock may quickly recover after falling below one of these metrics.
Nonetheless, the top in the XHB, the homebuilders ETF, was at 125.88 on 11/25/24, the same day as when the S&P 600 and Russell 2000 small cap indexes peaked. 11/25/24, around Thanksgiving, is a day of infamy.
XHB falls through correction territory and now dabs its big toe into the ice cold bear market waters. Will XHB completely collapse into those cold waters and drown? It is almost March so the spring home construction season will pick-up so perhaps stocks will stabilize. Keystone has been highlighting that the US has been in a housing recession for over 2 years.
The bell tolls for Toll Brothers with TOL taking the pipe. DHI, LEN, KBH, NVR and FERG are all sinking in the same house boat. If you want to look at horrible charts, take a look at that crap. We don't need no steenkin' McMansions. Keystone is not holding XHB or any of the homebuilder tickers long or short currently. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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