Profit Watch has no qualms about being bullish on Australian housing. We now have a peg to stake in the ground, too.
The second half of the year should be bullish if the builders on the ASX are anything to go by.
Stockland Group Ltd [ASX:SGP] is Australia’s largest residential developer. They released their latest results yesterday.
What’s the vibe?
They say the upturn in the housing market is crystal clear – forecasting an improving property market. Of course, you’re right to be sceptical, but the Stock Market agrees. Stockland closed high yesterday.
Mr Market’s judgement is one to follow here. What’s your takeaway exactly? He likes the outlook for Stockland as of now.
We can say that confidently because otherwise the stock would have dropped heavily yesterday.
The fact that it didn’t tell us is all we need to know. The market is pricing in a more favourable future than the recent past.
We can see this via Cedar Woods Properties Ltd [ASX:CWP], too. This is a builder with a heavy bias to Western Australia.
The numbers for the last half of 2019 weren’t great. But Mr Market is already looking ahead.
Cedar liked the second half of the year, too. And Mr Market agreed. Cedar closed high to end the day as well.
Hey! What about all the doomers that like to predict the collapse of this supposed house of cards? They’ll have to wait a little longer.
Certainly, you’re doing yourself a great disserve if you listen to their analysis. Profit Watch was on the housing rebound from the get go.
If you’d prefer to get wise, make sure you check out our latest report on what you need to know here.
By the way, your Profit Watch has three editors appearing today, and will do so more often every week.
I’m thrilled to say Terence will be bringing you more trading and technical insights now to compliment Jono’s work.
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PS: While Sydney and Melbourne find their house price peak, This Aussie city appears set for a big growth phase over the next few years…Click here to download your free report