Don't buy it. For months now the debate has been over whether America will have a hard landing of soft landing, the answer hinging on how big 2007's housing disaster turns out to be. Well, there won't be any housing disaster. We won't have a landing at all, soft or hard. Right now the U.S. and global economies are both accelerating.
You can see right through the housing crash story by looking at the prices of housing stocks. The market knows what the economic worrywarts do not, which is that the housing sector is already making a comeback. In the last six months housing stocks are up 24%, well ahead of the overall market. If housing were destined to fall apart in 2007 these stocks wouldn't be so strong now.
~ Ken Fisher, "Housing Boom!," Forbes, February 26, 2007 (He recommend Pulte Homes (34, PHM), Toll Brothers (34, TOL), and Beazer Homes (44, BZH).)