The housing market is slowing. Why would any sector of the housing market be a good buy, whether it is carpets, air conditioners, roofing tile, or manufactured homes?
Second, the biggest cost of a home is land. Why would anyone buy land now for their manufactured home? I think buyers are on the fence on buying land now.
Leasing space in a trailer park is expensive too. In Poway, we have several trailer parks. Yesterday, while at the dog park, I met a lady who is an accountant. She pays $750/month for her space. She paid $40K for her trailer, and thinks it is worth $80K now. I think it is a very high rent.
I would check out the realistic prospects for manufactured homes, not from some manufactured home sales rep, but from someone you trust to tell you the truth.
As asianautica said, each industry has its own PEs. Look at Chevron with a PE of only 6 or 8 (??). Oil is going up, but such a low PE. Car companies have low PEs too. Software companies have much higher PEs.
Buying any stock now, you are running against the crowd. In a declining market, you are betting that your stock is going to go against the crowd. It is like running into a stampede of cattle. Maybe you will emerge on the other side, but most likely, not.
I don’t see any reason to buy any stocks now, except a sure winner like an energy company that is undervalued. I would run far from anything housing related. That’s just me….
