Very rarely does a bell sound at the bottom, or top, of an economic cycle. One of the most important of the economic cycles is the interest rate cycle. And, the market thinks it is hearing a bell in the distance with the release of the latest inflation numbers.
If inflation is falling fast enough to allow the Federal Reserve to lower rates in the first half of 2024, one of the biggest beneficiaries of that rate cut will be housing and housing related stocks. Thus the huge jump in those stocks the past few days. Two companies that will benefit from that rate move, but that aren’t trading at all time highs like some of the homebuilder stocks, are Alarm.com Holdings (ALRM) and Armstrong World Industries (AWI).
