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Never before in recent U.S. history has the construction industry had so much investment potential. Today, the scale of infrastructure and resources needed to complete modern projects can lead to both extraordinary financial risk and exceptional reward for investors.
Our theme of Housing Stocks, which includes the stocks of home improvement players, building supply companies, and home builders including DR Horton and Pulte Group has fared reasonably well this year, rising by about 13% year-to-date. This compares to the S&P 500, which has gained about 11% over the same period.
When mortgage rates started to increase rapidly in the middle of 2022, the real estate market ground to a halt. Then, prices started to drop.