Homeowners Are Stuck. Here’s the Only Real Winner NowWhy millions can’t move, and how you can cash in as they stay put
This weekend I saw something you will not hear on CNBC… And I am going to show you how it could put fast cash in your pocket. My wife and I visited her mother in the suburbs. She’s in her seventies. Worked hard her whole life to pay off her home. Now? She’s not thinking about moving. She’s out pulling weeds, planting tomatoes, and — her words — “finally fixing that damn bathroom.” When we stopped at Home Depot, it was packed. The garden section looked like Black Friday. Not one person in that store looked like they were shopping for fun. They looked stuck. Locked In, Nowhere to GoHere’s what the numbers really show: A growing number of homeowners, especially those who bought near the top, now owe more than their homes are worth. In pandemic boomtowns like Austin and Cape Coral, prices dropped nearly 20 percent from their highs. Nationally, over half a million homeowners are underwater. That is the most for any April in five years. The only people able to sell right now are those willing to take a loss or who bought a decade ago. Everyone else? Stuck. Even if you want to buy, good luck. Home prices are near all-time highs, mortgage rates are north of 6.5 percent, and most homes sit on the market for weeks. The spring housing market was supposed to be hot, but this year, it is a bust. Homes are sitting on the market longer, and about a quarter of sellers cut prices in May. People used to trade up. Now they are trading up their kitchens and bathrooms instead. The Real Boom Is at Home DepotYou know who wins in a market like this? Not the homebuilders. Not the flippers. Not the realtors. It is Home Depot. All that cash that would have gone into moving fees and down payments is flowing right into new paint, appliances, and garden mulch. Even as Wall Street dumped the stock over tariffs, I am seeing something different in the real world. Every stuck homeowner, and there are millions of them, is becoming Home Depot’s best customer. Don’t Buy the Panic. Buy the Cash Flow Let the crowd panic about headlines. I have watched Home Depot for twenty years. The real tell is what happens on Main Street, not CNBC. Summer is here. The math is simple. More stuck people means more fixing, more gardening, more Home Depot. How I am Playing ItStock is at $361. I think it is headed to $387. Nice, but that is a $36,000 outlay for 100 shares.
Here is the smarter trade. You will not hear this on Bloomberg.
That puts $217 in your pocket per spread, risking $283. Every day, you collect about $0.40, like an ice cube melting in the summer sun. If HD stays above $365, you keep it all. If it dips a bit, you are still good. If it drops below $360, that is your defined risk. (You can see the live order setup from my own Tastytrade account in the screenshot below.)
Why This WorksWall Street is panicking about tariffs, missing what is happening at the checkout line. The real story is in the aisles of Home Depot, not in the headlines. People are not moving. They are making do. And Home Depot is cashing in. Watch Home Depot. Watch the money. Do not let the headlines trap you. Trade smart. Until tomorrow, Josh Belanger Disclaimer: Some of the links above are part of paid promotions. If you take action, we may earn a small commission. I only share stuff I believe is worth your attention. Josh Belanger's results are not typical and are not a guarantee of your success. Josh is an experienced investor and your results will vary depending on education, work experience, and background. Josh does not personally participate in every investment alert he provides. Due to sensitivity of financial information, we do not know or track the typical results of our students. Josh’ strategies may not always be accurate, and his investments may not always be profitable. They could result in a loss of an entire investment. We cannot guarantee that you will make money or that you will be successful if you employ his trading strategies specifically or generally. Consequently, your results may significantly vary from his. We do not give investment, tax, or other professional advice. Reference to specific securities should not be construed as a recommendation to buy, sell or hold that security. Specific securities are mentioned for informational purposes only. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, investment strategy, or individual’s investment does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
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Rabu, 25 Juni 2025
Homeowners Are Stuck. Here’s the Only Real Winner Now
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