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Go With the Banks, Not the Builders

By Jim Cramer

 About this article:
 Someone asked me today if I still liked the banks and the homebuilders or if I have joined Ron Insana in wanting to be out of them. First, I never liked the homebuilders. What's happening out there, the massive sales of existing and foreclosed homes, will keep a lid on prices, and you need rising prices and dramatically lower inventory to make a compelling case for KB Home or Pulte or D.R. Horton or especially Hovnanian. Even if Ron changed his mind and went back in, I would avoid them until the home sale price, not the home sales, appreciates and I don't think that will happen even in 2010. Stabilization, as I always say, does not equal appreciation. Dougie Kass shot me a piece about a possible Toll Brothers upside surprise on the horizon, obviously good news, but it doesn't intrigue me as much as...

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