Expect the Impossible... Even in Housing

Many folks in the U.S. are focused on a false narrative today... Business Insider just summed it up perfectly. Here's the headline from last weekend... [Chaikin PowerFeed]( Expect the Impossible... Even in Housing By Marc Gerstein, director of research, Chaikin Analytics Many folks in the U.S. are focused on a false narrative today... Business Insider just summed it up perfectly. Here's the headline from last weekend... [Chaikin PowerFeed] Investors are buying into this misconception, too. Housing stocks have slumped in recent weeks. The SPDR S&P Homebuilders Fund (XHB) dropped as much as 7% in August. But the real world is breathtakingly adaptable. As my colleague Vic Lederman [wrote last Friday]( the housing market marches on despite high sticker prices and mortgage rates. It's not "stuck" as Business Insider would lead us to believe. Put simply, a lot of buyers are willing to just grit their teeth and pay up... The National Association of Realtors' Housing Affordability Index came in at 87.8 in June. That means typical homebuyers are paying about 14% more than experts think they should. It's a steep price to pay. But at least for now, people are doing it. And the thing is, we're starting to see hints of a couple trends that might boost housing supply. That could potentially ease prices in the months ahead. So let's dig into that today... Recommended Links: [September 12 will change everything]( If you missed the AI rally earlier this year, you can't overlook this new prediction about what happens NEXT to U.S. stocks. Two top experts say it could be a turning point for millions of Americans. But if you know what's coming, you could potentially 10x your money or more, 10 different times, without touching options or cryptos. [Click here for details](. [His System Isolated NVIDIA – Here's His NEXT Buy]( Marc Chaikin's stock-picking system isolated NVIDIA before its massive bull run this year. Now, it just flashed "BUY" on a new A.I. company that no one is talking about yet. It's not a household name... but Marc predicts it could quickly double or triple from here. [Click here for the name and ticker](. A few days before the above headline, Business Insider cited a study from real estate firm Redfin (RDFN) in another story. In short, it found that investor purchases are plunging... By investor purchases, we're talking about housing sales to hedge funds and other "flippers." These types of buyers don't want a forever home. They just want to make money. Redfin found that investor purchases dropped 48%, year over year, in the first quarter. Then, these purchases suffered another 45% year-over-year decline in the second quarter. They're the steepest quarterly drops since the 2008 crisis. Of course, less demand from investors means more supply for regular homebuyers. So that isn't a particularly negative development. If anything, it tells us the market is shifting away from seeing housing as a place to make a quick buck. That's especially helpful for buyers in the single-family housing market. The landscape is changing in single-family housing, too. In short, we're seeing early signs of progress against zoning rules that limit homes per acre. Oregon, California, and Maine have effectively ended single-family zoning. And Arizona, Rhode Island, and the city of Minneapolis are working on similar legislation as well. Now, many single-family-housing advocates are fighting back. They defeated New York Governor Kathy Hochul's effort to increase suburban housing density. But even in that case, legislators are open to approaches that give local jurisdictions more say in how it's done. I understand why it's hard to see such baby steps as breaking the housing stalemate. But it's no harder than it once was to envision OPEC losing its stranglehold on the energy sector. As I've learned over my decades in this business, the impossible always seems to happen. In housing, the world needs it to happen. And homebuilders will make money with every nail and plank along the way. That's true even if they're building multifamily rental homes. Good investing, Marc Gerstein Market View Major Indexes and Notable Sectors # Hld: Bullish Neutral Bearish Dow 30 +0.20% 12 14 4 S&P 500 -0.31% 133 259 107 Nasdaq -0.72% 46 44 9 Small Caps -0.94% 422 1032 478 Bonds +0.28% Utilities +1.31% 1 7 22 — According to the Chaikin Power Bar, Small Cap stocks have become somewhat more Bearish than Large Cap stocks. Major indexes are mixed. * * * * Sector Tracker Sector movement over the last 5 days Energy +2.52% Real Estate -0.43% Financial -0.44% Utilities -0.52% Health Care -0.83% Discretionary -1.15% Materials -1.41% Communication -1.43% Staples -1.58% Information Technology -1.87% Industrials -1.91% * * * * Industry Focus Pharmaceuticals Services 10 23 4 Over the past 6 months, the Pharmaceuticals subsector (XPH) has underperformed the S&P 500 by -9.17%. However, its Power Bar ratio, which measures future potential, is Strong, with more Bullish than Bearish stocks. It is currently ranked #10 of 21 subsectors and has moved down 1 slot over the past week. Top Stocks [rating] CORT Corcept Therapeutics [rating] ANIP ANI Pharmaceuticals, [rating] ARVN Arvinas, Inc. * * * * Top Movers Gainers [rating] CNC +4.93% [rating] WRK +4.24% [rating] FTRE +3.89% [rating] INTC +3.24% [rating] PCG +2.61% Losers [rating] STX -10.94% [rating] ALGN -7.78% [rating] PODD -7.69% [rating] FMC -7.41% [rating] SWKS -7.35% * * * * Earnings Report Reporting Today Rating Before Open After Close CPRT, ORCL KR No earnings reporting today. Earnings Surprises [rating] GWRE Guidewire Software, Inc. Q4 $-0.56 Missed by $-0.54 [rating] GIII G-III Apparel Group, Ltd. Q2 $0.40 Beat by $0.39 [rating] WLY John Wiley & Sons, Inc. Q1 $0.27 Beat by $0.33 * * * * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, [click here](. You’re receiving this e-mail at {EMAIL}. 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