US housing stocks seen rallying as millennials age

New York

STOCKS of large US home builders and building materials companies are poised to rise as millennials age and need housing, according to Bill Smead, the chief executive of Smead Capital Management.

In an interview on Wednesday, Mr Smead said value-oriented companies such as those involved in housing will regain favour once investors lose their infatuation with trendier, high-flying names that he called "The Jetsons." The title of the animated TV show is his shorthand for Amazon.com Inc, electric car maker Tesla Inc, and technology companies such as Google parent Alphabet Inc that are often dominant, viewed as on the cusp of the next big thing.