Eli Broad, founder of homebuilder KB Home, sees more housing difficulty ahead, including another 10% drop in home prices. Bloomberg:
U.S. home prices likely will drop another 10 per cent from their peak before the housing market begins to recover, said Eli Broad, founder of Los Angeles-based homebuilder KB Home….
Broad said the U.S. economy is “in a recession no matter how you want to measure it,” and recommended that investors put their money in the energy industry, multinational companies with the largest stock-market capitalizations, and emerging economies such as Brazil, Russia, India and China. The return on U.S. stocks likely will “be in low single digits” this year, he said.