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    2 replies to "Focusing on ROIC Makes a Material Difference"

    • Roger Greene

      Thanks for the article. Looks like they have grown steadily since 2009. In light of current economic conditions, I was wondering how they performed when housing prices last dropped. When housing prices rise, homeowners seem more willing to invest to improve their properties, whether to keep or sell. Did you have any insights on how they performed when housing prices cratered in 2008? (Hopefully, prices won’t fall as much this time around.). Thanks

    • Kris Tuttle

      It looks like $HD held up pretty well back in the collapse of 2008 and 9. I think about that more as a money shock than a real recession. Housing prices dipped, but they recovered very quickly (at least in the Boston area where I was living at the time.)

      The stock market recovered more rapidly in 2009 than most people expected. I can’t post the image I saved of the chart here, but the shares fell from $38 to a low of $22 at the beginning of 2009, but one year later, they were back to $34 and on their way to much higher levels from there. The rise looks positively parabolic on a long-term chart to over $400! I’m watching HD and other housing names like $BXC and $DFH. It seems a little early to buy these, but it’ll be time when the fed is done tightening.

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