Brandon Foor sent me an interesting item several days ago. While the last day of January saw the stock market end on a high note, up over 170 points for the day, it still does not counter the horrendous month for the stock market. January, 2008 will go down as the worst trading month in the history of the stock market, down over 7% for just the month. According to Brandon, it's important to note, however, how sectors perform. Financials, Consumer Staples, Utilities, Energy, and Technology all suffered big losses for the month.

So what was the best performing sector for the month of January? Housing--up over 5%.

So why was housing the best performing sector? Brandon tells me to look at Toll Brothers or any other high-end builder that has been hammered now for over a year. Plus, with the Fed lowering rates by 1.25 points in less than a week, this allows potential liquidity to hit all markets, including housing. Remember, Wall Street looks at things 6 months in advance, and housing is no different.
 

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