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Home Construction ETFs Are a Profitable Investment Thanks to Millennials

Home Construction ETFs Are a Profitable Investment Thanks to Millennials

Sold.

That’s what every “for sale” sign says in my neighborhood. By my count, most houses sell in two to three days, which is astonishingly fast, especially when I think about what was going on in the housing market even last year.

Now, I’ve told you before that I believe there’s a massive housing shortage in this country, and that’s because the millennial generation — which is made up of people currently between the ages of 18 and 34 — is now coming of age and is just beginning to buy houses. And at 92 million strong, this generation is going to require a lot of housing…

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But up until recently, many of these young people weren’t able to purchase homes. And that’s for one reason: They simply couldn’t get a mortgage.

This comes down to credit availability, which the Mortgage Bankers Association tracks through the Mortgage Credit Availability Index (MCAI).

Up until recently, many young people weren’t able to purchase homes. And that’s for one reason: They simply couldn’t get a mortgage.

You can see from the chart above that mortgage availability really started to take off in mid-2013 and has been steadily improving ever since — to the point where it’s now the best that it’s been in nearly six years.

Mortgage credit is critical to the housing market, and seeing MCAI improving is one reason why I told you to buy the iShares U.S. Home Construction ETF (NYSE Arca: ITB) back in February of 2016. Had you gotten in back then, you’d currently be up by nearly 39%, crushing the S&P 500 (which is only up 24% in the same period).

Up until recently, many young people weren’t able to purchase homes. And that’s for one reason: They simply couldn’t get a mortgage.

If you like market-crushing trades like this, then be on the lookout for an exclusive new service I’m launching that looks to get you into stocks that soar higher right from the get-go, just like this housing trade.

Regards,

Paul Mampilly
Editor, Profits Unlimited

Asst. Managing Editor’s Note: As the housing shortage continues, there’s an even bigger shortage that’s reaching crisis proportions. A “magic” metal with medicinal powers that helps save hundreds of thousands of lives every year is disappearing quickly. The remaining supply could be worth billions, maybe even trillions, to pharmaceutical companies such as Pfizer, Merck and Johnson & Johnson. Click here to see how you can get in on the commodity trade of a lifetime.

About The Author

Paul Mampilly

Paul Mampilly is an American investor and former hedge fund manager. Paul has been featured on CNBC, Fox Business News and Bloomberg TV. He is the founder of the popular investment newsletter Profits Unlimited, where he uses his skills, experience and knowledge as a former Wall Street insider to guide his more than 130,000 subscribers into stocks that are primed to shoot higher. Born in India, Paul came to the United States as a young man and quickly joined the ranks on Wall Street. With over 25 years of experience in the investment world, he started his career in 1991 as an assistant portfolio manager at Bankers Trust. From there, he quickly rose to prominent positions managing multimillion dollar accounts for Deutsche Bank and ING. He has also managed money for the Royal Bank of Scotland, Sears and a private Swiss bank.

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