The flat brown line is the S&P 500. Anyone have an explanation why housing stocks are worth 5x what they were in 2000?
Fool with the Yahoo Charts if it amuses you.
Update: PVisionary suggests a 10 yer chart rather than starting in 2000. The second chart refects this. With the exception of Lennar the trend remains the same.
6 comments:
Oh, come now! You know perfectly well that the S&P was near a historic high in 2000. A starting point of 1998 might be more appropriate.
But, yeah, it does beg the question of why the housing stocks have held up so well. I think people don't realize that there will be major brand-name homebuilders biting the dust before this is all over.
I can tell you why. People are stupider now than they were ten years ago about financial matters, and financial advisors are way stupider.
Well I feel stupid. I got a hunkin' chunka in Fedility Money Market waiting to jump in and now we find out it isn't safe.
MOM, the financial obfuscation is a lot more sophisticated these days.
Speaking of brand names, how about relative value added fun with Fruit Loops™! No obfuscation required.
I don't understand either how housing prices have raimied so high.
Back in 2000, I thought that was it - Big housing market crash coming, but home prices actually went up even faster and faster.
If I would have bet $10 bucks every time I thougth the housing market was going to go down since before 2000, I would be flat out broke and into the millions in debt.
Even if we do have a housing market crash now, I lost all of my credibility as far as trying to predict the housing market.
It's almos like the Casey Serin story in that we all thought that the FBI was going to get him for blabbling about the mortgage fraud he did and blooging about it in open public, yet, weeks and week went by and Casey remained (remains to this day) free.
Dawg,
I'd be more curious to know why they were valued at 2000X just a couple of years ago. Yeah we're in a crash, but the figures just haven't set in yet.
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