The Bottom Line 8-30
TRG spent the last days of August in Chicago with the Owens Corning management team, mostly focusing on the Composite division. Stay tuned for a note next week outlining takeaways in greater detail. In keeping with trends since the Great Recession, August proved to be a bumpy month, with the S&P 500 falling 6% in the first week of the month and then following a zig zag up and down for the remainder of the month. Volatility still rules the day, a trend we expect to continue for the remainder of 2019 and into the following year leading into elections. On a fundamentals basis, we are seeing green shoots in residential housing as rates drop and expect better commentary out of the market as we enter into the fall. Demand for starter homes ($250-$350K) remains robust, with growth constrained by lack of labor and availability of land. Non-res visibility remains strong and prospects through 2020 remain bright. While Hurricane Dorian is bearing down on Florida, weather mostly has cooperated for the first two months of Q3, a welcome change for many of TRG’s coverage.