There is a big opportunity to take some exposure on housing industry investment, Warren Buffet did it, With names like Acme Brick, Johns Manville, and Shaw listed under the Berkshire Hathaway umbrella, Buffett has long had direct exposure to the health of the U.S. housing industry. Buffett's real estate exposure expands beyond retailers, however; Berkshire's roster also includes manufactured housing giant, Clayton Homes.
Reported that this week, Buffett and his fans are likely smiling. Amidst the deluge of economic data seen over the past few days, we have witnessed some encouraging information regarding the heavily battered construction industry. Yess, there is a big opportunity out there
Early february, on Feb. 1, market watchers turned their attention to construction spending. The data is according to the U.S. Department of Commerce's report, this index gained 1.5% in December, outpacing analyst forecasts. This marks the reading's fifth consecutive monthly increase. In addition, the New York Times reported that construction spending is sitting at its highest level in 20 months. Slowly but sure it seems.
By the way, Even more encouraging is the fact that it is residential construction that appears to be spearheading the industry's improvement. This report is certainly encouraging, but I do not feel that the recent batch of data is enough to definitively indicate a turnaround. While aggressive investors may be tempted to dive headlong into the homebuilders at this time, caution is still warranted here. As Buffett has stated, oversupply continues to plague this industry.
If you wanna take some act, Any bet should be small and closely monitored. Real estate investment trusts continue to be the stronger housing-related bet. Conservative and aggressive investors alike can gain ample exposure to this corner of the sector using funds like the iShares Dow Jones U.S. Real Estate Index Fund and the iShares Cohen & Steers Realty Majors Index Fund.
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