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Tuesday, June 26, 2012

Barron's: "Home Builder Euphoria on Shaky Ground"

"[W]e think that even though home prices have stabilized, the rebound will be too modest and protracted to justify the current lofty valuations of Lennar and its peers. While the long, slow slog toward normalcy in the housing market continues, the data also indicate that the industry has a long way to go yet, making a bet on pricey homemakers likely premature.
[...]
Therefore, if Lennar, one of the sector's standouts, still seems like a pricey and uncertain bet, it doesn't seem that shakier home builders will be able to hang onto recent gains."
Although detractors believed that the word "normalcy" was a neologism as well as a malapropism coined by Harding (as opposed to the more accepted term normality), there was contemporary discussion and evidence found that normalcy had been listed in dictionaries as far back as 1857.

Posted by CP at 12:38 PM

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