“This chart suggests that the extremes of the housing bubble exceed those of the dot-com era NASDAQ bubble, which in turn suggests that the severity of the coming decline might also exceed that of the dot-bomb era wealth destruction.”
We agree there’s a housing bubble. That’s why we’re here. I just think you and Charles Smith are reading too much into the chart. Like I said, you’re comparing a basket of 100 stocks across multiple industries to 20 stocks focused on one industry.
Also, maybe it’s a matter of semantics but I don’t consider the homebuilders to be bubble stocks. They made money off a bubble but their valuations were never close to the nuttiness that characterized the tech bubble.
