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Shocking Housing Market With Logan Mohtashami, Buy and Hold vs Technicals, Merrill's Recruiting Drive

The Compound and Friends

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The surprising resilience of the housing market and builders' confidence

The economic discussion has been missing the insight that despite low new home sales in 2022 and a high cancellation rate, a small change can have a significant impact. Builder stocks, previously trading cheap, became ridiculously cheap, leading to a misconception that the housing market was heading into a recession. However, builders' confidence started rising, defying the belief that a recession was imminent. This unexpected resilience of the housing market and builders' confidence offers a valuable lesson where conventional wisdom was completely turned on its head.

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