Tuesday, July 1, 2008

Housing Market Affects Stock Market

The AJC has a couple of articles on Home Depot (an Atlanta-based company) this week. Home Depot is at their lowest price since January of 2003 and has dropped from the second largest retailer to the third. Obviously, the housing market is being blamed for the loss in the company's momentum. Normally, Home Depot is touted as a solid company with great growth. I'm planning on buying a house in the next year and I'm glad the timing will work out to where I will be getting in at a low point in the market, but another way you can take advantage of the drop in the housing market is by buying housing dependent stocks. Home Depot and Lowe's are two obvious examples. I am sure there are lots of other companies that are based on the housing market. Perhaps a tile or lumber company. Maybe a company that specializes in home fixtures or appliances. Perhaps even a realty company. What companies do you think will be bargains as a result of the downturn in the housing market?

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