patrick.net

Strategist says

I have Toll Bros and some others, but the ETF's like ITB, XHB is what my little portfolio mostly holds.

The one item I would look out for is if profit margins due to get hit when rates go higher with these higher priced homes, right now TOL was the first to bite on the lower sales price and they got hit on he earnings.

Builders who can sell lower and middle end homes should have the advantage in terms of net sales and pricing power.

If existing inventory grows, that's to me the biggest competition for the builders because of the big price gap between new and old.

However, we are all working from low level sales, that gives the future legs

TOL down again, from $30-$34 it's a much better pick up price, because under $30 no real support until $20 but that is a Great Recession price, so as always be mindful