Is it Time to Sell Housebuilder Stocks?

THE WEEK: Morningstar columnist Rodney Hobson comments on the recent fall in housebuilder stocks - and whether it is a sign of things to come

Rodney Hobson 12 January, 2018 | 3:10PM

Housebuilder stocks have fallen in value

In the previous two lengthy housing booms the doomsters were forever prediction that the good times for the sector would come to an imminent end. Say it often enough and you are going to be right one day. It’s happening again, so the question is whether the end is once more nigh.

We have had positive updates from housebuilders for the past eight years, which is why I bought shares in Barratt Developments (BDEV), Taylor Wimpey (TW.) and Bovis Homes (BVS). Only my original purchase in Barratt was premature, and even that is way ahead now. I am very reluctant to sell even though I could take excellent profits.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barratt Developments PLC528.40 GBX0.04
Bovis Homes Group PLC704.00 GBX0.00
Marks & Spencer Group PLC95.96 GBX-2.16
Moss Bros Group PLC  
Mothercare PLC7.10 GBX5.81
Next PLC4,822.00 GBX1.77
Taylor Wimpey PLC138.95 GBX0.14
Ted Baker PLC65.12 GBX-2.80

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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