The surge of new buyers in the housing market continues.
But despite the impressive numbers, there's trouble on the horizon in the form of rising lumber costs and overly high demand.
So instead of buying into the home buying hype, our Andrew Keene is looking at playing another much more profitable home sector…
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The Dow Jones today is flat as COVID-19 cases continue to rise across the United States.
The Nasdaq continues to barrel toward new records thanks to surges in Amazon.com (NASDAQ: AMZN), Microsoft Corp. (NASDAQ: MSFT) and Apple Inc. (NASDAQ: AAPL).
Read on for more of what's moving the Dow today...
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If you folks have been following along, you'll know that I've recently started offering a free new service called Profit Pregame, where every morning Monday through Friday, I've been delivering an easy-to-digest rundown of the market, answering the three simple questions:
What's happening?
Where's the money?
How can I get some?
Today, I want to aim these three questions toward the housing market's unexpected comeback. I'll break down how you can profit from this sector's surprising stability…
What's Happening?
Despite the impact of coronavirus, Americans are still ready and willing to buy a new home or fix up their current one.
To no one's surprise, the housing market experienced a sharp decline at the beginning of the pandemic…
In fact, in April, pending home sales reached their lowest point in nearly two years.
However, as restrictions begin to lift and more Americans go back to work, an influx of buyers and sellers are coming back to the market. And this rapid return is beginning to form what could be a "V-shaped" recovery.
Over the past few weeks alone, purchases have been skyrocketing. And we're seeing 13% more than at this same time last year.
Listed homes are also typically under contract within 30 days, which indicates that the market is moving fast.
That leads us to where the money is here...
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American retail sales had their biggest monthly jump ever, soaring 17.7% in May and adding some "oomph" to a rather tepid stock market rally.
The jump was mostly driven by thousands of retail stores and restaurants reopening after months under lockdown.
But the thing is, the future of retail and the entire economy is very uncertain right now. Even though, after the initial "coronavirus crash" in March, investors seemed to shrug off the pandemic and all its economic destructiveness in April and May.
Since then, states have reopened their economies and people have resumed their daily lives.
And now, we're seeing some troubling signs that COVID-19 infections are surging in places like Texas, Arizona, California, and Florida.
That's provoked a psychological 180 among investors.
They're suddenly very concerned with the pandemic's progress, so much so that they sent the big indexes tumbling by high single digits last week in the biggest losses since March.
That disconnect – the contrast between a piecemeal public approach toward virus containment measures and the markets' sudden concern over new infections after months of ignoring them – is in fact a "Reality Gap" that we can leverage for big profits this week.
Here's D.R. to show you how...
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When you think of dividend stocks you might picture a utility company or insurer.
A boring company in predictable sector.
But it doesn't have to be that way.
The tech sector's lightning fast growth is powering some of the best dividend stocks on the market.
Take 5G for example.
Grandview Research estimates the 5G market will reach $45.7 billion this year, and eventually soar up to the trillions.
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The Dow Jones Industrial Average is moving in reverse Wednesday as markets digest weak economic data.
Domestic manufacturing has raised red flags, while investors await this morning's update on private payrolls.
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The Dow Jones Industrial Average continued its historic run in premarket trading as it added an additional 103 points to yesterday's record high.
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The Dow Jones today traded flat in premarket hours as investors continued to mull over the Trump administration's conflicting messages on trade policy.
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Don't look now, but another housing bubble is forming…
That is actually a bit of a worry for many analysts.
But you can make money from the surging price of homes while analysts panic...
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What could be better? We're now in the first full week of the season, with 62 S&P 500 companies on the docket.
This is a critical season that I believe takes on more significance than most. That's because the market itself is at a critical juncture – a tipping point, if you will.
The bulls and bears are in a monster tug-of-war over the market's direction during the next few months, and, naturally, earnings could be the factor that tips the scale one way or the other.
I couldn't be more fired up about the next few days - and you will be, too, once you see this...
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