So my argument is simple... As long as home prices remain elevated, the stock market will not crash. Just consider the facts... According to Freddie Mac, the house price index (which measures home value appreciation) is up 11.3% this year. But what about rising interest rates, you ask? Will they derail the housing market? According to Goldman Sachs, higher rates are unlikely to derail the strength of the U.S. housing market. Okay, but what about the last time that home prices moved up like this - and triggered a housing bubble? Well, if you recall, the last housing bubble was caused by interest-only loans created by lenders like Countrywide Financial and Washington Mutual - both of which are no longer in existence. That sort of reckless lending - which allowed people to move into multimillion-dollar houses by essentially passing an "honor system/wink, wink" credit check - is simply not happening in today's market. And that leads me to Home Depot (NYSE: HD). YOUR ACTION PLANWhile home prices remain elevated, shares of Home Depot appear quite attractive. As you can see, they've retraced back down to the $300 support level - which I consider a very attractive entry opportunity. In fact, we hit a quick winner on Home Depot calls in The War Room this morning, so this idea is already starting to work. But I'm getting ahead of myself. If you have NOT YET watched The Big Debate: Will The Market Crash in 2022?, then you need to get yourself caught up. Click here to watch it. And I'll warn you in advance: I land a number of laugh-out-loud zingers at Marc's expense that you will not want to miss! This just might be the best debate you'll ever see - so check it out now! Launch The Big Debate! P.S. Our friends at The Oxford Club are launching a FREE online training event that will show you how to transform your wealth through stock options. It's entirely free, and it goes live on Thursday, May 5, at 9:30 a.m. ET. Click here to reserve your spot today. |
No comments:
Post a Comment