Connect with us

Hi, what are you looking for?

Right Decision NowRight Decision Now

Stocks

NOW Is The Time To Add This Industry Group To Your Portfolio

As the winter season approaches, I’m going to suggest that you consider buying into what might seem to be a warm weather industry – home construction ($DJUSHB). The “go away in May” theory applies very strongly to this cyclical group. Over the past 20 years, the average 6-month return in this industry can be broken down as follows:

May through October: +0.3%November through April: +12.5%

Does it make any sense? Not at first, because the most popular time to begin building a house is the spring time. It avoids many winter-related delays. But I’m not talking about the best time to build a new home. Instead, when’s the best time to buy stocks within homebuilders? Based on the above seasonality chart, that time is November, or RIGHT NOW. While interest rates have been soaring in 2022, the DJUSHB has quietly been improving technically, threatening a key price breakout, while trending up for months relative to the benchmark S&P 500. Check this out:

I called a market top at the end of December and felt we’d see 6-9 months of a cyclical bear market, followed by a massive rally to set new all-time highs. I believe we’re now on our way as the Fed pivots away from its hawkish stance.

On Thursday, I’ll be featuring the best home construction stock to own right now, in my opinion. It’s showing EXCELLENT relative strength vs. its home construction peers and it’s averaged gaining 13.4% in the November to January period over the past 20 years. As rates drop, I see this one EXPLODING higher! If you’re not already an EB Digest subscriber, CLICK HERE to start your subscription and receive this stock tomorrow morning. Remember, subscription is FREE and you may unsubscribe at any time.

Happy trading!

Tom

    You May Also Like

    Business

    The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector...

    Business

    The Home Office has made next to no progress in tackling criminal fraud during the past five years, despite it having become Britain’s most...

    Business

    1.22 billion people use Instagram every month. That’s a huge number of Instagrammers trying to hit it big on the platform all at the...

    Business

    Mark Zuckerberg has laid off more than 11,000 Meta’s employees, about 13 per cent of its global workforce, in what he described as “some...

    Disclaimer: rightdecisionnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 rightdecisionnow.com | All Rights Reserved