New housing ETFs, new creative loans, and hundreds of thousands of condos about to come on the market
After the bubble has popped, and values are declining.
Timing is everything.
Boy, does it feel like 2001 all over again...
Wall Street often tries to cash in on investors' tendency to chase the latest hot trend, as evidenced by the technology and Internet funds launched in the run-up to the 2000 dot-com crash.
However, in the case of exchange-traded funds concentrated on the home-construction industry, asset managers may be behind the curve.
The first ETF focused on homebuilders recently began trading and another is in the works. The timing of the launches seems dubious, however, with the housing market losing strength after a prolonged bull run.
"We're seeing early signs of a softening housing market," said Brad Sorensen, senior sector analyst at the Schwab Center for Investment Research. "This housing boom was longer-lasting and more inflatable than previous ones, but the cycles are similar."
November 21, 2005
Posted by blogger at 11/21/2005