Benefit and fees keep investors away from the shares of construction companies in America

Investors abandon the shares of home -building companies in the United States at a record rate, with the horizon of industry damage due to the high borrowing costs, which is an indication of the possibility of continuing drop in these shares. The sector was damaged by the decline at an accelerated rate. First, data showed Tuesday that the confidence of US construction companies in February dropped to the lowest level in five months. The next day, investors discovered that the rate of the construction of the building was delayed in January. The results of the poor profits of the toll proteers confirmed the depth of the crisis this week. The high interest rates destroy the demand, while the ghost of high costs due to customs duties expel any hope of profit growth. A poor performance for “S&B 500” The shares of construction companies are the second worst achievement in the S&P 500 since Donald Trump’s victory in the election; It fell by 24%. With six sessions at the end of February, it appears that the box that follows the sector, which is the ‘ishares USATESTRUTUCTION ETF’, is on its way to the largest monthly flow beyond its history. This weakness comes to strong profits that lasted two years, during which the construction index increased by 70% compared to the increase of S&B 500 by 53%. “If I will trade, I will not be at risk of entering this sector,” says Paul Nolt, the market strategy and the first manager of the wealth of Murphy & Sylift Wealth Management. Investor centers also indicate that traders are preparing for more declines in the short term. According to Crystone Murphy, co -chair of the Susquhanna International Derivatives strategy, the demand for protection options for losses in the shares of construction companies is high. Consumers are damaged by home costs, real estate related interest rates are currently 7%, while the medium prices of new individual homes are 30% higher compared to December 2019. These two factors have already damaged the ability of consumers to afford home costs. In addition, the possibility of compiling customs duties with 25% on imports from Canada and Mexico, and 10% fees on Chinese goods, threatens to raise the prices of building materials. According to the National Association of Home Builders, about 32% of home appliances and 30% of the soft forest come from international trade. “Most of the decrease in the ability to withstand housing costs comes from the high prices of homes,” said Dennis DeepoHer of “22V Research”. As a result, Deepushier said: “In the short term, housing activity appears to be stable or withdrawal.” The judgments of building businesses are cheaper, but on the other hand, the judgments of construction companies have become cheaper. The percentage price of the book value in the sector has dropped below the long -term average, suggesting that within 12 months or more there is a ‘good access point for investment with the support of positive, stimulating factors in the long run’, according to Depusher. The index is currently trading at 1.8 times the annual book value, according to data collected by “Bloomberg”, compared to 5.3 times the S&B 500 index. In the long run, the department expects the housing sector to gain momentum, indicating that the gap between the current and long -term ownership rate indicates a shortage of about 3 million homes. Meanwhile, technical analysis experts, who study trade patterns to evaluate the assets’s course, indicate upcoming downward signals that warn about more problems in the future. The decrease this week in the I -Shirts Fund for Construction has briefly pushed it to a long time under the directions, which may indicate deeper losses. Miller Tobacco + Co.