Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyan Mailbag: Levitating Housing


All looks quiet and comfy until risk comes undone...

Prof Succo-

With respect to your last post, would you agree that some big funds (it is month end, quarter end and year end after all...) have been playing "goal line defense" with some of the homies (see Centex (CTX) and Beazer (BZH) and Accredited Home Lenders (LEND) although not a homie...) trying to keep their gains up and NOT having to sell and take a tax hit (and of course goose performance)??? The HGX in my view (as limited as it is...) is "levitating" by only the "year end tricks" by some of these managers and "hangers on/momentum guys."

Another example of "risking dollars for nickels?" Why not, there is NO RISK right???

Minyan Steve


I absolutely believe that is happening. One would have to be naïve to think otherwise. And of course, no one complains as they make money on paper. It is nearly irresistible for most not to do this with OPM in their desperate search for returns.

Of course we all pay the piper at some point. All I see this doing is increasing risk and compression.

I know I sound like a broken record, but that is the nature of the beast. All looks quiet and comfy until risk comes undone and everyone looks around and asks what happened. That is how markets work. Most corrections occur from merely the weight of things.

With bullish investor sentiment now at 60.4%, option prices at a secular low and funds set up to make money if the market doesn't go down and pensions and housing dependent on higher asset prices, we have a very crowded trade.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos