Schwab's Article on Housing Market and Stock Market

[JoeFatmama]

haha, doesn't look all that correlated in 1994 and prior. this particular stretch of time has seen housing market treated much like the stock market, as immoral, speculative schmucks made it into a veritable scam. i'm not shocked at the current parity, but unlike stocks, housing market has certain constraints (such as -- people actually ned homes to live in) that cannot possibly allow it to function like stock indefinitely. an eventual disparity is inevitable. chickens are coming home to roost.

[HangerAngler]

Originally Posted by tommie frazier

hanger-you needed this study to get that? not all the people tapping into crazy equity bumps to keep spending and spending beyond their income level?

No, I didn't. I didn't spell it out, but to carry my initial idea forward: this graph just spells out something fairly obvious.

Now, there probably are certain sectors of the stock market for which something like this would be more meaningful.