Renowned market strategist David Rosenberg is urging investors to abandon overhyped artificial intelligence (AI) market plays and instead rotate capital into heavily discounted U.S. residential construction equities.
The president of Rosenberg Research revealed that despite his notorious "perma bear" reputation, he expects a massive cyclical turnaround for the neglected housing sector.
The Valuation Disconnect Speaking to Kitco News, Rosenberg highlighted a stark pricing mismatch between tech-fueled momentum indexes and traditional residential construction companies.
While the broader S&P 500 index currently trades at an elevated multiple well over 20, housing equities remain completely overlooked by mainstream institutional capital.
"The US home builders are trading with a 10 multiple," Rosenberg stated, emphasizing that the sector presents a "huge discount off everybody's radar screen" for value-driven investors.
