One month does not make a trend…
I am finding it real hard to believe that we may be bear the bottom of this housing mess.
I am solidly in the camp that it does not turn until the end of 1009 at the earliest. I have put the reasoning in this post from the Value Investing Congress.
Since then we have seen the employment picture deteriorate and banks like JP Morgan (JPM), Bank of America (BAC) and Wells Fargo (WFC) have tightened LTV levels down to 65% in many of the hardest hit markets. How does any of the situations, far from dictating a housing rebound, not infer more damage ahead?
It just doesn’t add up….at all…
But, like I said before, if you are looking for that summer house, 2009 will be a great buying opportunity..
Disclosure (“none” means no position):Long WFC, none
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