D.R. Horton(DHI) Forbes·2024-08-30 18:18Federal Reserve and Dollar Impact - The Federal Reserve is expected to cut interest rates soon, which will have significant implications for various markets, including the dollar, housing, and equities [1][2] - The Dollar Index (DXY) has shown a notable increase in 2022 due to aggressive rate hikes but is now showing signs of potential decline, with a critical support level between 100-101 [2] Housing Market Insights - The housing market is currently experiencing a slump, with housing starts falling to an annual rate of 1.24 million in July, the lowest in over four years [6][7] - A 50-basis point decline in the 30-year mortgage rate and potential Fed rate cuts may improve market affordability, although challenges remain [6][7] - D.R. Horton Inc. (DHI) is highlighted as a strong player in the homebuilding sector, with 69% of homes delivered in the past year priced under $400,000, indicating a focus on affordable housing [8] Energy and Utilities Sector - The energy transition presents profit opportunities in both traditional oil and gas stocks and renewable energy companies, with utilities performing well in 2024 due to favorable conditions [9][10] - The demand for electricity is expected to remain strong, driven by factors such as AI-related data center investments, despite concerns about the Chinese economy [10]