Never mind that this analysis has PIMCO CIO for global credit Mark Kiesel, whose organization has a stake in investors' positioning in various and sundry housing stocks and other financial products.
The four "pillars" of his thesis--job growth and consumer confidence; constrained supply and pent-up demand; easing credit access and more demand for it; and relative affordability--are correct, and his presentation and support for it are helpful. He writes:
Investors seeking to capitalize on these trends should consider increasing their allocation to US housing and housing-related sectors. We continue to see value in select companies in areas such as building materials, home improvement, title insurance, homebuilding, banks, and specialty finance companies as well as in non-agency mortgage-backed securities (MBS).