Kass: 'Kudlow & Company' Recap

I went on to comment that a combination of targeted policy efforts aimed to revive housing, a marked reduction in home mortgage rates, better affordability and an extended period of low production of new homes (vis-à-vis population and household formation growth) argues that the balance between housing supply and demand might move closer in balance by late 2009 vs. my previous expectation of stability in mid-2010.

Accordingly, I suggested that it might now be time to look to buy select (read: depressing and depressed!) housing stocks. I am currently long Ocwen Financial (OCN Quote) and Hatteras Financial (HTS Quote), but I am now doing research on the group in an attempt to uncover values.

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Know What You Own: Ocwen Financial and Hatteras Financial operate in the savings & loans and mortgage investment industries, respectively, and some of the other stocks in their fields include Hudson City Bancorp (HCBK Quote), People's United Financial (PBCT Quote), Annaly Capital Management (NLY Quote) and MFA Mortgage Investments (MFA Quote). For more on the value of knowing what you own, visit TheStreet.com's Investing A-to-Z section.

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Doug Kass writes daily for RealMoney Silver, a premium bundle service from TheStreet.com. For a free trial to RealMoney Silver and exclusive access to Mr. Kass' daily trading diary, please click here.