It may or may not matter but lumber was up smartly today.
Appaloosa’s David Tepper has a penchant for making big bets in battered portions of the market. His latest gambit: the homebuilders.
No question that the group is pretty cheap. But that’s because the housing market, well, stinks. And recent data provide scant indication that things are getting any better. In April, housing starts fell nearly 11% and existing home sales eased 0.8%. Both readings were below already grim expectations.
Tepper’s bet relies on two things. First, the housing market probably can’t get much worse. Second, more jobs are being added, which makes it easier for more folks to buy homes....MORE