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Homebuilder stocks have taken off as the housing market has recovered.
But the surge in the homebuilder stocks could prove short-lived.
“I think [the stocks] moved on speculation – people just looking to get ahead of the thing,” Money Morning Chief Investment Strategist Keith Fitz-Gerald said Friday on FOX Business Network‘s “Varney & Co.”
“I’m very leery of additional upside here,” Fitz-Gerald added. “I’m very concerned that this is housing bubble 2.0.”
He pointed to the dearth of first-time homebuyers and “trade-up” buyers and said history suggests the “fast money” helping driving the stocks upward won’t last.
Fitz-Gerald also spoke of the pessimism about the economy among many Americans.
Asked about a FOX Business Network poll showing more than half of Americans believe the worst is yet to come for the economy, Fitz-Gerald said, “I think that’s extremely telling because it suggests a psychological shift in this country, and for a country that has always made its future based on hope and optimism, that’s troubling.”
Watch the video to see why Keith thinks economic recovery would probably begin “in earnest” in 2014 or 2015.