Hard Dollars Back Up Housing Observations

To add more concreteness and weight to today’s observations about home construction (and renovation), comparable store sales at both Home Depot and Lowes confirm the slowing of real estate construction. It is nice, if not so often, when hard dollar figures imitate to even a small degree what is being shown of adjusted statistical probabilities.

ABOOK Aug 2014 Housing Constr Home DepotABOOK Aug 2014 Housing Constr Lowes

Lowes has not yet reported second quarter figures but will do so tomorrow. That should, hopefully, give us a better idea as to how much of a “bounce” there was in the spring vs. the winter. For Home Depot, there was a better result in the second quarter, but given the disparity of the two retailers’ experience on this side of the big housing bust it isn’t clear if that was more about Home Depot continuing to really beat Lowes or the state of housing overall. In either case, the trends are synchronous which is, at this point, important and relevant to earlier discussions.

 

Click here to sign up for our free weekly e-newsletter.

“Wealth preservation and accumulation through thoughtful investing.”

For information on Alhambra Investment Partners’ money management services and global portfolio approach to capital preservation, contact us at: jhudak@alhambrapartners.com or 561-686-6844 . You can also book an appointment for a free, no-obligation consultation using our contact form.

One Response to Hard Dollars Back Up Housing Observations
  1. [...] Thinker, Trader, Holder. Why? – Grant Williams, TTMYGH Here Are 10 Countries Hoarding Enormous Piles Of Gold – Business Insider Foreigners Dump Record Amount of US Securities, But Who the Heck Is Still Buying? – Wolf Richter France Returns From Summer Holiday To A Stagnant Economy, Record Unemployment, And A Growing Deficit – Business Insider Hard Dollars Back Up Housing Observations – Jeffrey Snider, Alhambra Investment Partners [...]

    Reply

Leave a Reply