Homebuilders have been on fire this week mainly, it seems, on the strength of a Monday upgrade by Citigroup Homebuilder Analyst Stephen Kim.
Check out the moves in some of these builders (as of Fri 10/5, 1pm EST):
KB Home (KBH): +15.0%
DR Horton (DHI): +14.0%
Pulte Homes (PHM): +13.0%
Beazer Homes (BZH): +11.3%
Lennar (LEN): +9.1%
Let’s be real clear here: there has been ABSOLUTELY NOTHING BUT HORRIBLE NEWS OUT OF HOMEBUILDERS RECENTLY.
This is a clear case of hope as an investment philosophy.