While the market is still elevated, many subsectors have still been experiencing persistent pain this year. Perhaps no group has been hit harder than homebuilders, and by extension, the general building materials industry. Despite continued optimism from builders like Toll Brothers (TOL) and KB Home (KBH) that comes through within builder confidence surveys, the majority of investors continue to lean bearish. Reasoning for that includes late cycle market fears, rising rates, and higher commodity costs. I see both sides of the argument, but in my mind underlying sentiment has fallen too