That might help support and explain the SP500/Housing correlation.
But on the other hand, I am considering what the other guy said about the HMI in phase and then out of phase with the stocks. One year out of phase is a suspiciously long time. I think I would want to find some logical explanations for why that happens such as the above article and what Chrispy just said.
On the other side of the arguement, why didn’t 1992 – 1996 get affected much at all if this is so very true? Plus when things fell in 2002 for the SP500, it was because of the dotcom bubble and not really because of housing right? You could argue that was what started the dotcom bubble too. Therefore, that entire hump was probably just coincidence. Then when people saw low stock prices, naturally they just pick up and start rising again…about when houses started rising too.
We had another national real estate fall from 98 to 02? I didnt know that.
