Housing - a major headwind for the economy

Housing starts are going nowhere, as I expected. Housing starts are exactly at the same levels as in October 2012. See above chart. Click on the chart to enlarge it.
I have been writing here and in my The Peter Dag Portfolio for a long time, predicting a weak housing sector because of the extreme and prolonged weakness of lumber prices.
You can rest assured home prices will also grow much more slowly in the not so distant future.
Housing is a major sector of the US economy (together with autos). Their weakness  will be two major headwinds for the economy.
Of course, time will tell.

More details in The Peter Dag Portfolio on www.peterdag.com

George Dagnino, PhD
The Peter Dag Portfolio
Since 1977
Author, Profiting in Bull and Bear Markets
No. 1 bond timer in the past 12 months. 

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