Homebuilder Blues May Breathe Life Into ‘Hope Trade’ Stock Rally
- Summer selloff could amplify seasonal rebound: Raymond James
- Past shows sector beating S&P by 23% after periods of selling
Contractors work on the roof of a home under construction in the Toll Brothers Inc. Regency at Palisades community in Charlotte, North Carolina.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
Homebuilding stocks have been taking a beating for the past two months, but the suffering might pay off.
One analyst thinks the sector’s summertime underperformance, driven by fears of a housing slowdown, may amplify the group’s seasonal “hope trade,” in which investors buy up builder stocks in the winter and early spring in anticipation of robust demand.