Financial Advising & Asset Management
As an asset manager, financial analyst or advisor, you need to allocate your clients’ resources in a way that maximizes returns and minimizes risk. To this end, you should assess housing investments in light of both actual fundamentals and public perception of those investments.
The Housing Tides Index provides a holistic measure of housing fundamentals which facilitates a comprehensive risk and reward analysis. For example, an analyst managing a portfolio containing equity in a real estate investment trust (REIT), homebuilder ETF, or major public homebuilder stocks such as D.R. Horton (NYSE:DRH), Lennar (NYSE:LEN), PulteGroup (NYSE:PHM), or NVR (NYSE:NVR) benefits from a deep understanding of the local housing markets that affect these investments. Finding, collecting and cleaning data for each market is burdensome, but with the Housing Tides Index you can quickly see the economic indicators relevant to your decision-making process. Information about things such as local employment, housing supply, and mortgage characteristics inform equity price targets and aid interpretation of homebuilder forward-looking statements.
Whereas homebuilder projections are often overly optimistic, the Tides housing market forecasts provide our best estimate of future construction permits in each metro area given current fundamentals. As such, using the permit forecasts jointly with the Housing Tides Index allows you to interpret builder goals in a macroeconomic context.
The Tides Media Analysis provides you with extra voices and perspectives to draw from when making decisions. You should view results from sentiment analysis with the Housing Tides Index in mind to identify the sources and authors whose sentiment is appropriate for current market conditions.
Media coverage of the housing industry surely influences public perception. Economic outcomes are the aggregation of the decisions of individuals with limited knowledge obtained through major media channels, so you shouldn’t underestimate the effects that media coverage has on housing markets.
As a prudent analyst, you should consider the underlying fundamentals reported in the Housing Tides Index and permit forecasts as well as public perception measured by media sentiment.
We recognize that the flow of housing news is overwhelming. The Forecaster Report Card should help you focus on the industry experts who make reliable, accurate forecasts and give less weight to the projections made by those who don’t. Bottom line: don’t believe everything you read, and when encountering a prediction offered in the media, it might be fruitful to check the forecaster’s track record.
The Housing Tides Report offers a suite of components with powerful synergy, empowering you to make your best real estate investments yet.
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