NEW YORK ( TheStreet) -- Homebuilder stocks were the market leaders until May 20 when the PHLX Housing Sector Index (HGX) (170.76) peaked at 210.01, up 22.6% year-to-date at that time. The index set a 2013 low at 164.03 on Aug. 15, down 4.2% on the year and down 21.9% from the May 20 high. The index is now down just fractionally on the year.As the homebuilders rallied into May, my recommended strategy was to book profits on strength as these stocks became extremely overvalued. On May 17, two days before the housing index peaked I wrote, Homebuilders Downgrades Continue. With the builders at or near multiyear highs booking profits was the prudent strategy for investors.
Housing Bubble Is Re-inflating
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