Cramer thinks investors should buy shares of homebuilders when they go down.
I believe these stocks will drop again, but I think you have to pounce if the Fed says they still see signs of inflation. As soon as the next rate hike, that is.
Homebuilder sentiment fell to a two-year low in May. Home prices continued to rise this week as mortgage rates rose sharply.
Homebuilding stocks might go against the tide despite the Federal Reserve getting ready to tighten the economy, according to Cramer.
He pointed out that the Pandemic has changed the homebuilding industry, leaving downtown offices empty because of work-from- home, plumping potential buyers' bank accounts and driving a baby boom that could mean more business for homebuilders.
Some people invested in homes rather than signing a lease due to the high rent prices, while constrained supplies of houses have kept properties from depreciating in value and led to bidding wars between potential buyers.
Cramer said he was going to buy the homebuilders when there were more downgrades and estimate cuts.
If you join the CNBC Investing Club, you will get to follow Jim Cramer on a daily basis.
It is not possible to say that it is not possible to say that it is not possible to say that it is not possible to say that it is not possible to say that it is not possible to say that it is not possible to say that it is not possible to say that it is
There are questions for Cramer. 1-800-743-CNBC.
Do you want to learn more about Cramer? Don't hit him! Jim Cramer is on social media.
Suggestions, questions, and comments for the website? madcap@cnbc.com
All Rights Reserved © 2024
