Thursday, November 27, 2008

Buy Homebuilder Stocks

Investing in homebuilder stocks in this market might seem counterintuitive. But this article explains why now is the best time to invest in homebuilder stocks.

Investing in homebuilder stocks before the housing market makes its turn-around might not seem like a good idea at first. But if you want to make the most money off of homebuilder stocks, it is imperative that you buy before the turn-around officially starts.

Once the turn-around begins, keep your eye out. All the big mutual funds will begin to put their money into the stocks, making the prices rise quickly. At the time that you think everything is going perfectly, that there is no way your homebuilder stocks will go down, that time is the time to sell. Remember - you haven't made a profit until you've sold the stock.

Before you buy a homebuilder stock - do your research. These stocks can be quite volatile. Read everything you can about them. Here are a few stocks that I think are the best of the group: KB Home (ticker: KBH) Lennar (LEN) Meritage Homes (MTH).

By ehow.com

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