low homebuilding supply backdrop supports builders’ outlook.
LAR (Lennar) is a buy because homebuilders face unusually low “existing home” supply and demand should keep shifting toward new builds.
Homebuilders are favored because existing homes being pulled from sale forces buyers toward newly constructed homes. The speaker argues the existing stock is old and needs upgrades, which further supports builder demand even if overall valuations compress during market stress.
"‘Virtual Guarantee’ This Sector ‘Will Crash And Burn’, Warns Fund Manager | Bill Smead"