Steve Eisman, who rose to fame betting against subprime mortgages, said investors should buy shares of homebuilders, land and mortgage lenders as the U.S. housing market improves.
“Housing is attractively priced versus incomes,” Eisman, founder of Emrys Partners LP, said at the 18th Sohn Investment Conference in New York today. “While homebuilders are cheap, they have not priced in how much fundamentals have improved.”
Eisman recommended the stocks of Ocwen Financial Corp., Colony Financial Inc. and Forestar Group. Forestar rose as much as 7.9 percent and Ocwen gained as much as 3.3 percent.
Eisman said he was pessimistic about the Canadian housing market where rising prices weren’t accompanied by growth in personal incomes.