by Dave Kranzler, Investment Research Dynamics:

The following analysis was presented earlier this month in the Short Seller’s Journal.

I agree with the title quote but it’s not mine. The CEO of luxury furniture retailer, Restoration Hardware ($RH), commented on the Company’s Q3 earnings call: “For the housing point of view, there is no soft landing…It’s looking more like a crash landing in the housing market. It’s looking like 2008, 2009…The housing industry is in a free fall.”  Furniture sales are highly correlated with the home sales. I was pleasantly surprised thus to hear the CEO of a company tied at the hip with the housing market speak candidly. This is in contrast to the CEO of every homebuilding company who put a positive spin on the prospects for their respective companies’ home sales in the outlook for 2023 in their companies’ latest quarterly earnings report.