- Signs of housing market weakness should be interpreted carefully
- Could an unloved industrial company be ripe to re-rate?
The housing market looks to be at some point of inflection and investors are, understandably, nervous about businesses reliant on its well-being. However, the dynamics of the mortgage market differ somewhat from the housing transaction market and it is possible for businesses ploughing new or different furrows to sustain growth even in seemingly difficult times.
Perceptions can also be wrong about a single business based on passed missteps that can blind investors to positive changes, internal and external. It can often be beneficial to revisit stocks that one has chosen to judge negatively or even written off as a bad lot. Times do change.