Editor's note: "Bricks and Mortar" is a mock portfolio created by reporter Nicholas Yulico that is meant to help generate real estate and gaming-related stock ideas. In keeping with TSC's editorial policy, Yulico doesn't own or short individual stocks.
The fourth quarter started off with a bang for the broader stock market on Monday, and the Bricks and Mortar mock portfolio surged on the rally.
The portfolio is now up 23.2% since its inception in late January, handily beating the S&P 500's return of 8.3% in the same period.
Such outsized returns make it a nice time to examine what's working and whether there are still stocks left to buy in the real estate and casino sectors.From a top-down sector perspective, I believe homebuilder stocks will remain a disaster and should not be bought. I've been bearish on the group for a year now and continue to flag Ryland (RYL - Get Report) as overvalued. There's no reason to buy into a group where nearly all builders are reporting losses, and the future will get uglier because of pricing wars across the industry -- a thesis I laid out in a