NEW YORK (TheStreet) -- As the Federal Open Market Committee prepares to finish up its first meeting for the year today, rumors abound about a third round of quantitative easing to stimulate housing market recovery.
Investors will expect more information that may reveal the Fed's intentions after a move toward greater transparency earlier this month promised revelations of "qualitative information" about the Fed's balance sheet.
Fed Chairman Ben Bernanke's concern over a housing market that continues to languish was highlighted in a recent white paper sent to Congress. In it, Bernanke raised speculation that a third round of easing, or QE3, may target ramping up that market, buying mortgage-backed securities and bringing more reasonable underwriting and appraisal practices than today's tough standards.
We asked Brian Kelly, co-founder of Shelter Harbor Capital, what stocks might benefit from Fed steps to help the housing market. Here are three stocks he said are poised to benefit:
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV